When the Microhoo deal went dead, the tech world was abuzz with rumors that Microsoft was looking for another big purchase. The Wall Street Journal reported that Microsoft had its sights set on Facebook, but it turns out the rumored Microbook (Facesoft?) is a load of hooey.

According to Fortune, Microsoft sources say not only is Microhoo never going to happen, but Microsoft currently has no plans to buy another internet giant.

Last year, Microsoft put $240 million into Facebook for a 1.6 percent stake. Facebook raised another $100 million last week, and Fortune's David Kirkpatrick believes that as more investors jump on board with Mark Zuckerberg's social network, Microsoft will eventually seek to buy Facebook or at least up its share.

"A sufficiently high offer of, say $20 billion for the whole thing, would probably get Zuckerberg's attention. But for now there is no reason for Microsoft to pay that much. With Yahoo it would have gotten the world's largest collection of online advertising inventory. Facebook is still figuring out how to make money out of the collective activity of its 70 million active members," Kirkpatrick wrote.

So, what's Microsoft to do? Kirkpatrick sees it possibly going after the other big social network -- MySpace. Coincidentally, MySpace has an advertising partnership with Google, Microsoft's chief rival, in the quest to rule the internet.