Facebook Stake Goes to Microsoft
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Written By Sepideh Saremi | October 24, 2007 | Share This
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Today’s biggest news is that the battle between Google and Microsoft for a piece of Facebook has ended - and the victor is Microsoft, with a $240 million stake.
The biggest winner? Mark Zuckerberg, who got his $15 billion valuation.
Mashable notes that though Microsoft’s status as Facebook ad partner may have given them the edge over Google, their $240 million investment buys just under 2% of the social network. So why did Microsoft care if they’re getting such a thin slice and already have an ad deal? Because Microsoft’s image as an online innovator is far behind that of Google. Saul Hansell was skeptical that this deal would be beneficial to either engine, writing before this news was confirmed: “For Microsoft, keeping the link to Facebook has a P.R. value to make its advertising network, at least, seem relevant and to add inventory.”
Why was Google in the game? Hansell continued, “Google seems to entertain itself by making Microsoft draw down its cash. Google probably overpaid for DoubleClick by as much as $1 billion. But that got Microsoft to overpay for Aquantive by perhaps $4 billion.” And Mark Zuckerberg is laughing all the way to the bank.
Topics: Facebook, Google, Investment, M&A, Microsoft, Social Media |