Microsoft buys a piece of Facebook, an expensive piece…

Well there were signs all over the net that there is a huge bidding war between Microsoft and Google and it seems Miscrosoft just wanted it more than anybody. The speculation was that who ever wins the bidding in the end will buy around 10% of Facebook, but the war ended with Microsoft paying $240 Million for a 1.6% stake in Facebook. Which makes Facebook overall value goes up to 15 freakin BILLION Dollars, $15 Billion, wow, although this year they have made only around $150 Million in revenue.

So what is the deal exactly, well Facebook gets allllot of cash, employ some new employees, expand to other countries and so on, for Microsoft, it will be selling ads that show up on Facebook outside the U.S and share the revenue with Facebook, btw Microsoft already sell ads for Facebook in the U.S.

Who should we congratulate? who is the real winner here ? only time will tell.

View Comments October 26th, 2007