Microsoft Antes Up for Facebook

Microsoft apparently beat out Google yesterday and won a piece of social networking company Facebook. Microsoft agreed to pay $240 million for a 1.6 percent stake in Facebook. That would put Facebook's total value at about $15 billion. At this level of investment, each of Facebook's 50 million users is worth $306.12 to Microsoft.

Microsoft's investment guarantees the software company's exclusive right to sell Facebook's international advertising. Clearly, Microsoft sees online advertising as its next growth business.

Getting a piece of the exploding interest in social networking seems to be the biggest prize of the last year, and Microsoft has won the latest battle. Is Facebook in particular or social networking in general a worthy partner for a software company like Microsoft? Is the company worth $15 billion? Send me your thoughts to pvarhol@redmondmag.com.

Posted by Peter Varhol on October 25, 2007 at 11:57 AM


Featured

  • Microsoft Previews Whiteboard Support in Teams Rooms Devices

    A preview of a new Microsoft Teams Rooms feature will enable organizations to use images of physical whiteboards as a dynamic space for videoconferencing.

  • 2019 Microsoft Conference Calendar: For Partners, IT Pros and Developers

    Here's your guide to all the IT training sessions, partner meet-ups and annual Microsoft conferences you won't want to miss this year.

  • Microsoft Warns of Heightened Threat of 'BlueKeep' Attacks

    Older Windows systems using Microsoft's Remote Desktop Services are at acute risk of remote code execution attacks due to the "BlueKeep" vulnerability.

  • The 2019 Microsoft Product Roadmap

    From the next major update to Windows 10 to the next generation of HoloLens, here's what's on tap from Microsoft this year.