Facebook didn’t come cheap. Microsoft is spending $240 million for roughly a 1.6 percent stake, based on an overall valuation of privately-held Facebook at $15 billion. Not bad, considering the fact that Facebook is a company that was founded by three Harvard students in their dorm room in February 2004.
Microsoft had signed up an advertising deal with Facebook in August 2006, which made Microsoft adCenter the exclusive banner and link advertising partner for Facebook. But this was limited to the US.
Now Microsoft opens new doors in expanding its advertising outreach globally by acquiring a stake in the social networking site.
Of late, we are seeing a rush from Microsoft to follow the trends that Google and Yahoo are making in terms of advertising through online services. Windows Live is getting bigger, better and smarter everyday with newer features being added.
Facebook is the only social networking site that is not blocked by the ISP in the UAE (Etisalat). Hmm.