Microsoft to Invest $240M in Facebook in Google Lockout
Microsoft to Invest $240M in Facebook in Google Lockout
by , 9:05 AM EDT, October 25th, 2007
Microsoft and Facebook struck a deal on Wednesday that will give the Redmond-based company a 1.6 percent stake in the social networking Web site. The $240 million deal will bring Microsoft and Facebook even closer together and at the same time blocks competitors like Google and Yahoo! from snatching a piece of the popular Web site, according to The New York Times.
As part of the agreement, Microsoft will sell banner ads that appear of Facebook's site outside of the United States, and then share part of the revenue with the company.
What may be more important for Microsoft, however, is the fact that Google and Yahoo! -- both companies that were showing an interest in Facebook -- have been shut out of the Facebook game. Facebook's $15 billion value and high-profile popularity was an enticing draw for all three companies.
Microsoft previously had a deal with Facebook through 2011 to run ads in the company's U.S. Web site. This new deal will help the Redmond company shore up its position as an online advertisement server and better compete with Google.
Facebook plans to use the money it gets from Microsoft to hire new employees, expand overseas, and develop an advertising system that custom matches ads to user preferences.
Observer Comments
Comments are currently closed. Please email the author instead.
Recent Headlines - Updated November 21st
- Fri, 7:07 PM
- Games - Soccer Sim Championship Manager 2010 Released for Mac
- 6:47 PM
- Games - EA Publishes Original Monopoly for iPhone
- 6:15 PM
- News - Original Apple I on Ebay for $50K, w/Letter from Steve Jobs
- 6:11 PM
- Games - New iPhone Games: Secret of the Lost Cavern Ep 1, New DJ Nights, More
- 5:47 PM
- Games - Star Trek D-A-C Game Headed to the Mac Next Month
- 4:57 PM
- Product News - TidBITS Releases “Take Control of Syncing Data in Snow Leopard”
- 4:26 PM
- John Martellaro's Blog - Particle Debris (week ending 11/20) Stationery Pads Go Poof
- 2:59 PM
- Free on iTunes - Musée du Louvre, Art Lite, SketchBook Mobile X and More.
- 1:50 PM
- Deal Brothers - Acer P215H bmid 21.5” Widescreen LCD Monitor: $139.99
- 11:24 AM
- TMO Appearances - Jeff Gamet Shares More Holiday Gift Ideas on MacJury
- 10:43 AM
- Product News - Cocktail 4.5 for Leopard Adds QuickLook Cache Clearing
- 10:06 AM
- News - Hack Enables Mac OS X 10.6.2 on Netbooks
The Mac Observer Reader Specials
- TypeStyler For Mac OS X is Now Shipping! Download The Free Fully Functional 60 Day Tryout at www.typestyler.com
OWC: Get the Right Memory / Ram for your Mac. Top Quality, Competitive Prices, Lifetime Warranty. Expert Support and Video Installation Guidies too! 4.0GB Matched Sets from $87.99, Options up to 32GB. Click here
If you're using a Mac, then you've gotta check out Full Tilt Poker for Mac. This Full Tilt Poker bonus code does the unthinkable, it actually rewards!For the latest Apple products use Ciao, a price comparison website, to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate mobile phones like the Apple iPhone.
Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.

