Microsoft To Take $240 million Pie in Facebook

Microsoft will be taking a $240 million pie in Facebook during its forthcoming financing and it values the company at a huge $15 billion. The final deal results in a 1.6 perecentage stake in Facebook which is eventually smaller than the speculated 5 to 10 percent.

According to Facebook Operations Vice President and Chief revenue officer, Owen Van Natta “We are pleased to take our Microsoft partnership to the next level”. “We think this expanded relationship will allow Facebook to continue to innovate and grow as a technology leader and major player in social computing, as well as bring relevant advertising to the more than 49 million active users of Facebook.”

In a conference call on Wednesday afternoon with press and analysts, Van Natta and Kevin Johnson, Microsoft’s president of platform and services, emphasized that this deal is all about the existing advertising partnership between the two companies, which has been going on for over a year now. Facebook founder Mark Zuckerberg, it should be noted, was not present on the call.

The deal comes of as a surprise considering the recent comments by Microsoft’s CEO Steve Ballmer who had brushed off Facebook as a “fad”. According to the contract, Microsoft will now be the exclusive advertising partner for Facebook and it would now be seen across all countries expanding beyond America.

However it was stressed that the deal won’t go beyond advertising and the “$240 million poke.” The integration of Facebook won’t take place into Microsoft or its services like Windows Live Messenger won’t be seen into Facebook.

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