Microsoft buys 1.6 Percent Facebook for 15 billion
Sunday, November 4th, 2007A recent article from The Seattle Times was reporting Microsoft buys 1.6 Percent Facebook for 15 billion. Some said Microsoft is not very smart to spend these kind of money to buy 1.6% of facebook. My thought was that Microsoft needs to increase its advertising exposure. Microsoft is looking after that 50 million users that are currently on facebook. I would think this is a right move for Microsoft to buy a tiny piece of facebook.
The Seattle Times wrote as follows:
Microsoft is paying top dollar to outbid its chief rival for a key piece of online-advertising real estate: leading social-networking site Facebook.
In a deal that’s reminding some people of the late 1990s dot-com bubble, Microsoft will pay $240 million for 1.6 percent of Palo Alto, Calif.-based Facebook, the companies said Wednesday. That implies the three-year-old, privately held company, which has yet to turn a profit, is worth $15 billion.
Microsoft beat out at least one other suitor — widely reported to be archrival Google — to become the exclusive, global provider of banner advertising sales on Facebook until 2011. In August 2006, Facebook selected Microsoft to provide advertising just in the United States.
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