The Facebook Winner: It's Microsoft
According to CNET, Microsoft has won it's battle with Google for the chance to invest in Facebook. The site indicates that the deal would include a direct investment in the company and an expansion of their current advertising partnership.
Meanwhile, the WSJ reports that the investment is for $250 million, a fraction of the $750 million to $1.5 billion range floated by the Post this morning.
At that price, Microsoft appears to be the clear winner, shooting down the hypothesis floated by Henry Blodget earlier today. At $250 million, this deal should make Microsoft a clear winner. Under their existing partnership, Microsoft has the right to sell banner ads on Facebook's U.S. site through 2011. This deal should expand that partnership to international sites, and prove that Microsoft remains a key player in the Internet advertising market. It will be interesting to hear Facebook's rationale for the decision; at that price, it's clear that Microsoft didn't outbid Google; the Facebook team must have decided that they prefer Microsoft as their long-term partner.
Comments