Microsoft took a $240m stake in Facebook a move that puts a value on the site, which has yet to make a profit, of $15bn. Microsoft said it would take a $240m equity stake in Facebook’s next round of financing and the companies would expand their existing advertising partnership. The cash payment equates to a 1.6 per cent stake in Facebook. Lex notes that Microsoft’s roster of internet friends looks puny in comparison to rival Google’s. No wonder it fought so hard to hang onto its relationship with Facebook. In terms of benefits, the devil is in the details of the advertising agreement – virtually none of which were disclosed.

This entry was posted by Helen Thomas on Thursday, October 25th, 2007 at 5:19 and is filed under Capital markets, M&A. Tagged with Facebook, microsoft. Edit this entry.