Microsoft and Facebook are new best friends. According to a Wall Street Journal article, Microsoft has invested a considerable sum of money -- nearly $250 million -- to provide advertising on the coveted social platform.
Microsoft Corp. agreed to invest $240 million for a minority stake in Facebook Inc. that values the social-networking site at $15 billion. As part of the deal, the two companies expanded their advertising agreement.
Forum discussion is mixed. Microsoft has valuated the company at roughly $10-15 billion. Facebook is only bringing in $150 million a year. How does it add up?
Others find that Microsoft screwed up.
Looks to me like M$ have got a great deal and FB have gone [nuts].
They've denied themselves any future bids from Google Yahoo! etc., and for what?
A little bit of development cash in exchange for a long term advertising deal - which will get M$'s money back in twenty minutes.
However, even others are happy for Microsoft since this is good exposure for them.
As for myself, I can't say I'm happy with the Microsoft-Digg advertising partnership (I am sick of seeing classmates.com advertisements) so I honestly am a bit skeptical about this relationship.
Additional coverage (lots!) is at Techmeme.
Forum discussion continues at WebmasterWorld.