Microsoft is reported to be in talks to buy a stake in Facebook that could value the social networking website at as much as $10bn (£5bn).

The talks could lead to a showdown with Microsoft’s rival, Google, which is also keen to invest in Facebook, the Wall Street Journal says.

The newspaper says Microsoft wants to buy up to 5% of Facebook, for a price between $300m and $500m.

Microsoft and Google both declined to comment on the report.

Facebook already has a relationship with Microsoft, which is the exclusive provider of banner advertising and sponsored links on the site.

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