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Three Reasons Microsoft Paid So 'Little' For Facebook

An anonymous reader writes "Microsoft's $240 million investment is much smaller than the rumored $750 million that Facebook sought. Why the difference? Wired Epicenter's Terrence Russell analyzes the deal, and points out three good reasons why Microsoft got a 'bargain'. 'Microsoft Only Needs an Entrenched Position - Ballmer's plan to acquire 100 startups in 5 years is still sketchy, but we got the point -- Microsoft wants momentum. If the company is to go forward as planned then taking a small, strategic piece of Facebook makes sense. Microsoft's financial interests in Facebook's ad platform already exist, so it only makes sense to strengthen that tie as the hype builds.'"

7 of 155 comments (clear)

  1. Re:Buy low... by sm62704 · · Score: 5, Funny

    Buy low? I figured out who all you slashdot people are. Mr. Gates, Mr. Ellison, Mr. Trump, Mr. Carmak...

    $240,000,000 and you folks say that's a bargain? If I had $240,000,000 I sure wouldn't blow it on a website! I'd blow it on fast cars and expensive booze and hookers. Hell, I'd stick it in the bank at 5% interest and blow the $12,000,000 interest on fast cars and expensive booze and hookers every single year and leave the whole $240,000,000 to my kids. Come to think of it, if I had that kind of money I wouldn't NEED hookers!

    I might even buy an iPhone, too. ;)

    -mcgrew

    --
    mcgrew's razor: Never attribute to stupidity that which can be explained by greedy self-interest
  2. Re:facebook my ass by cyphercell · · Score: 5, Funny

    hey, your not "Tom" as in "Tom" from Myspace are you?

    --
    Under the influence of Post-Cyberpunk Gonzo Journalism
  3. Microsoft by king-manic · · Score: 5, Funny

    Never ascribe to malice what can adequately be explained by incompetence.

    Microsoft corollary: Unless it's Microsoft then never ascribed to incompetence or bad management what can adequately explained by pure unrelenting evil.

    --
    "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
  4. The man on the street says.... by zappepcs · · Score: 4, Funny

    Man #1 - MS wants to buy 100 startups? Maybe they will buy a couple that can show them how an OS is supposed to work?

    Man #2 - Redacted, turned out to actually be a woman

    Man #3 - Wasn't this the MS business plan since way back in the early 90s? This is news?

    Man #4 - (claiming to be spouse of man #2) Is there really 100 startups worth buying? I thought the venture capitalists were becoming a bit put off on the whole tech thing?

    Man #5 - (throws a chair) MS will buy 100 startups if they have to secretly pay those companies to start up... MS will kill the competition in the buying startups sector!!

    Man #6 - Will they support iTunes?

    Man #7 - (dubiously wearing a /. shirt) Imagine a beawolf cluster of 100 companies........

    Man #8 - Shouts "Sorry, have to run and go start a company......"

    Seriously, 100 startups? Why not 49? Why not 'as many as it takes'... what is the deal with 100? Microsoft begins with an M, why not 1000 startups?

  5. Re:Smart Move? Maybe... by iced_tea · · Score: 5, Funny


    Balmer: $750 million dollars?? ****Agrrrrahhahahhahahah***** (throws chair)

    Facebook: Ok $240 million could do nicely as well.

  6. Re:Buy low... by Anonymous Coward · · Score: 3, Funny

    Facebook? I'm gonna make my own! With hookers! And blackjack!

  7. I wish Facebook and MySpace would join..... by elballio · · Score: 3, Funny

    then I could tell all my friends to come on MyFace