Microsoft to Pay $240 Million for Stake in Facebook

Nrbelex writes to mention The New York Times is reporting that Microsoft has beat out Google and Yahoo for a 1.6% stake in Facebook. The investment will cost Microsoft $240 million valuing the total site at somewhere around $15 billion. "The astronomical valuation for Facebook is primarily evidence that Microsoft executives believed they could not afford to lose out on the Facebook 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 attempting to match and in some cases block Google's plans, even if that effort is costly."

Comments

adblock

[middlemen]

Use adblock and give the finger to MSFT.

control

[hey]

Now they are share holder that have some control. That's what they are after.

Re:The next Big thing, again

[afabbro]

I disagree with the summary saying that it shows the company is worth $15 billion, that's ridiculous.

Um, it would be ridiculous...if the summary said that. The summary didn't say "it shows the company the company is worth $15 billion". The phrase was valuing the total site at somewhere around $15 billion This means if someone spent $240 million for 1.6% of your company, then 100% of it is valued at is $15 billion. Which if you do the math, it is. Nothing was said about "showing" what something is "worth".

I thought not reading the articles was bad, but now people aren't even reading the summaries...

Re:The next Big thing, again

[Eq 7-2521]

There's no selling of shares because FaceBook isn't public.