Microsoft to Pay $240 Million for Stake in Facebook - New York TimesFirst Faved : Oct 24 2007 by timchaoFaved : 3 times (2 with notes)Viewed : 18 timesFave It!
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- mohit - Oct 24 2007 | facebook, microsoft, social software, social networking
Had to redot. This is a nice valuation for Facebook (P/E = 500).
Quoted: Microsoft will invest $240 million for a 1.6 percent stake in the company, said Adam Sohn, a director in Microsoft’s online services group. The investment values the three-year-old Facebook, which will bring in about $150 million in revenue this year, at $15 billion.
Sweet. What do we win?
Quoted: Microsoft prevailed in a high-profile technology industry battle with Google and Yahoo to invest in the social networking upstart.
- anarchyintheuk - Oct 28 2007
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yea, i read about this when the deal was first being discussed. Mark Zuckerburgh is a genius...$240million!
P/E = 500!!! Wow, I guess we can expect 500% ad revenue growth year over year :)
if the deal has an exclusivity clause where microsoft gets all the ad inventory, then the deal can maybe be rationalized. more here:
http://bluedot.us:81/users/mike/dot/99331349074
Yep, read Mike's dot. It seems like MSFT is backdooring GOOG to capture more of the ad revenue through Facebook. MSFT has been really successful capturing growth through acquisition rather than reinventing the wheel. I have always admired how they have taken successful businesses and improved their models. It still comes at a steep price!