Confirmed: Microsoft Wins Facebook Stake with $240 Million Investment - Rmail

Posted by elveston priory at 11:40 pm

The Wall Street Journal is confirming that Microsoft has won the battle for expanded control over Facebook’s advertising, while taking a stake in the social network that values it at $15 billion. According to the report, Microsoft will invest $240 million in Facebook for its share of ownership.

Earlier today, the word was that Google was still in the running for the deal, but in the end, Microsoft appears to have won the battle, as first reported exactly one month ago.

Most signs pointed to Microsoft ultimately winning the deal since they’ve been Facebook’s advertising partner for more than a year. Nonetheless, $240 million represents less than 2 percent of Facebook at a $15 billion valuation, so it’s unlikely Microsoft will have much sway in terms of decision making going forward. However, it is certainly enough cash for Facebook to start making acquisitions and continue to bolster up its staff at an aggressive pace.

Meanwhile, Facebook is set to roll out their expanded advertising program in early November, as reported earlier this week.

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Link - Comments - Adam Ostrow - Wed, 24 Oct 2007 10:34:44 GMT - Feed (1 subs)
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User comment: By: Angelos
I stand corrected...Google will have to wait another day for global domination :) Seriously, Microsoft connecting with Facebook's forthcoming ad platform will hopefully provide Google with the necessary dose of advertising competition.
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User comment: By: sanmat
This is a boost to MS to be part of the SN game. Facebook ofcourse at this point is the winner. But its too early whether the choice of MS or Google was best. http://blogkatt.blogspot.com/2007/10/is-it-yahoo-google-myspace-or-facebook.html
[...] Source:Mashable! The Wall Street Journal is confirming that Microsoft has won the battle for control over Facebook's advertising, while taking a stake in the social network that values it at close to $15 billion. According to the report, Microsoft will invest up to $250 million in Facebook as part of the deal. Earlier today, […] Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages. [...]
User comment: By: Angelos
"Who Knows" is probably the best summary, but I am tempted to try my premonition powers...feeling something...sensing...Google! Today's earlier announcement to partner with RIM, who provides their own mobile search platform, makes working with the Redmond giant problematic at least in one area.
User comment: By: RexDixon
Flip of the coin! Both have a lot to offer, and it really depends on Mark Zuckerberg and what his plans are. As I stated, he plays by a different set of rules, so who knows? Rex
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