Wednesday, October 24, 2007

Microsoft Invests $240 Million In Facebook?

Today I was browsing the Internet, when I came across a small headline, "Microsoft Wins One in the War Against Google." Intrigued I clicked the link, and read more.

I come to find out Microsoft has invested 240 million dollars into Facebook, letting Microsoft sell ads for Facebook worldwide. This 240 million dollar investment into Facebook, only gave Microsoft 1.6 percent stake in Facebook. However, it appears this isn't even what Microsoft is really after.

An issue of the Inquirer states "Google formally declares war on Microsoft." Which basically says in 2005 Google confirms it will launch free spreadsheet and word-processing software online. Going on to say that this is a wake-up call for Microsoft.

So, it appears that by investing in Facebook, with only 240 million dollars, and only gaining 1.6% of the Facebook stock, Microsoft is only trying to invest in something against Google. This could be true. Maybe Microsoft no longer knows what to do with their money, or maybe they want to help a smaller business on the rise. Or, perhaps, Microsoft is trying to get one foot in the door. Investing in so little of stock that Facebook has no need to even think Microsoft would want to buy them out eventually. For now, we will have to take Microsoft's investment for what it's worth...240 million dollars for advertising.

1 comment:

SuperLappy486 said...

What does a 240 million dollar investment do against Google though? I agree that Microsoft may be doing it "to get one foot in the door" but i don't see why the move would hurt Google. If it's only 1.6 percent, couldn't Google still invest their share in Facebook also? Do you know if Google already has any advertising rights on Facebook? I think your right that Microsoft is just now realizing the potential of these online communities. Perhaps it's more like, they're trying to catch up to Google...