Microsoft takes stake in Facebook

Facebook and Microsoft Corp. today announced that the two companies would expand their advertising partnership and that Microsoft will take a $240 million equity stake in Facebook’s next round of financing at a $15 billion valuation. Under the expanded strategic alliance, Microsoft will be the exclusive third-party advertising platform partner for Facebook, and will begin to sell advertising for Facebook internationally in addition to the United States.

For a company that is less than 3 yrs old and annual revenue of less than $200 million, MS is taking a serious look this guy. Online communities has become so popular and valued in millions and billions. Friendster, myspace and facebook, etc.

Zuckerberg, the whizkid who started facebook rejected a 1 billion takeover from yahoo last year and probably a very wise move seeing situation now. Sep US numbers shows myspace has the biggest number of users at about 60+ millions, facebook at about 30+ millions while MS live space at about 10 million.

Facebook is planning to double its payroll to about 700 employees.

With targets of as many as 300 millions users worldwide, MS is hoping to use facebook as a ad magnet to increase its online advertising power. In addition, the thousands of widgets that facebook got from third party developers is a huge success and this seems to have attracted MS as well.

I became a facebookster weeks back and somehow I must admit it is quite addictive. It seemingly is simple but yet effective. The results are surprising and somehow really could linked up everyone. It is like a ripple effect in where it became a must to use as most people are using it.