Thursday, October 25, 2007

Microsoft snatch Facebook deal from Google

Microsoft has won the battle with Google and Yahoo to secure a small stake in Facebook.

"The two companies said on Wednesday that Microsoft would pay $240 million for a 1.6 percent stake in Facebook. The investment values Facebook, which is three and a half years old and will bring in about $150 million in revenue this year, at $15 billion...

The astronomical value placed on Facebook is evidence that Microsoft executives believed they could not afford to lose out on the deal. Google appears to be building a dominant position in the race to serve advertisements online. Fearing it might lose control over the next generation of computer users, Microsoft has been trying to keep up with and in some cases block Google’s moves, even if that effort is costly."

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