I’m still not quite sure how it is that anyone thinks that social networking sites Facebook or Myspace are going to make anyone money, but Facebook has been the subject of a bidding war of sorts between Microsoft and Google, and it looks like Microsoft won:
SAN FRANCISCO — Rapidly rising Internet star Facebook Inc. has sold a 1.6 percent stake to Microsoft Corp. for $240 million, spurning a competing offer from online search leader Google Inc.
The deal announced Wednesday after several weeks of negotiation values Palo Alto-based Facebook at $15 billion _ less than four years after Mark Zuckerberg started the online social networking site in his Harvard University dorm room.
Microsoft also will sell Internet ads for Facebook as the site expands outside the United States, broadening an existing marketing relationship that began last year.
Besides validating Zuckerberg’s decision to rebuff a $1 billion takeover offer from Yahoo Inc. last year, Microsoft’s money should be more than enough to pay for Facebook’s ambitious expansion plans until the privately held company goes public.
Zuckerberg, 23, has indicated he would like to hold off on an initial public offering for at least two more years. In the meantime, Facebook hopes to become an advertising magnet by substantially increasing its current audience of nearly 50 million active users, who connect with friends on the site through messaging, photo-sharing and other tools.
Hey, if he can make money off it, more power to him.
On a totally unrelated note, you can find my Facebook profile here.
October 24th, 2007 at 9:29 pm
it looks like Microsoft won ?