Microsoft Gets Stake of FaceBook - Sets FaceBook Value at $15 Billion

Posted by admin

October 24, 2007

Microsoft has just bought up a 1.6% stake in FaceBook for $240 million, which gives the start-up a valuation of $15 Billion. Thats right, $240 million for less than 2% of the company. The price is a bit ridiculous, but can still be seen as a good move for Microsoft as they finally get more involved in the social networking game at a relatively low cost (to them).

According to a Wall Street Journal report, FaceBook makes over $30 Million in profit annually off of $150 Million in annual profit. Microsoft already handles the domestic advertising for FaceBook and will now take over Facebook’s international advertising.

This is one of the rare cases where Google is beat out in bidding for a popular start-up or in this case a small part of a start-up.

Right now Facebook has almost 50 Million members and this number is growing dramatically each day. We will cover more as it is announced.

UPDATE: Mashable is covering the call between FaceBook and Microsoft live here.

WSJ