Microsoft buys Facebook stake for $240M - GoFuckYourself.com

JuiceMonkey · 10-25-2007, 02:29 AM

SAN FRANCISCO - Rapidly rising Internet star Facebook Inc. has sold a 1.6 percent stake to Microsoft Corp. for $240 million, spurning a competing offer from online search leader Google Inc.

Culminating weeks of negotiations, the investment announced Wednesday values Palo Alto-based Facebook at $15 billion ? a stunning figure for an online hangout started in a Harvard University dorm room less than four years ago.

Microsoft also will sell Internet ads for Facebook as the site expands outside the United States, broadening a marketing relationship that began last year..

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http://news.yahoo.com/s/ap/20071024/...book_microsoft

I guess holding out WAS worth it... well played

deanberkeley · 10-25-2007, 02:32 AM

WOW, that is crazy!

Mutt · 10-25-2007, 02:35 AM

Quote:

Originally Posted by JuiceMonkey

Culminating weeks of negotiations, the investment announced Wednesday values Palo Alto-based Facebook at $15 billion ? a stunning figure for an online hangout started in a Harvard University dorm room less than four years ago.

aye carumba

it's an amazing site - talk about sticky, our models live on that site, i just go on there to see what they're up to and what it's like to be 19 in 2007. pretty jealous actually.

JuiceMonkey · 10-25-2007, 03:14 AM

It's kind of nice to see google lose for once.. get some more competition into the game here.

BerdoR · 10-25-2007, 04:02 AM

Facebook´s current audience nearly 50 million active users

Shoehorn! · 10-25-2007, 04:13 AM

Amazing.

starpimps · 10-25-2007, 04:41 AM

facebook makes ppl even dumber

StuartD · 10-25-2007, 04:48 AM

I would never have guessed that Facebook has 300 employees... and it's insane to think that they'll have 700 employees next year.

That's some insane growth in 5 years.

million · 10-25-2007, 05:01 AM

Quote:

Originally Posted by BerdoR

Facebook´s current audience nearly 50 million active users

wow I didnt know that

LadyMischief · 10-25-2007, 05:04 AM

Social networking is the way people do things these days, and Facebook is among the most versatile of the social networking platforms. I'm not surprised in the least.

chodadog · 10-25-2007, 06:24 AM

Quote:

Originally Posted by LadyMischief

Social networking is the way people do things these days, and Facebook is among the most versatile of the social networking platforms. I'm not surprised in the least.

You're not surprised in the least? A 1.6% stake at 240 million values Facebook at 15 billion dollars. That's fucking insanity.

Ford is worth 18 billion. GM is worth 22 billion. You're not surprised in the least that people consider a social network website to be worth nearly as much money as two of the world's largest car manufacturers? Just under half as much as Amazon.com? A little less than a third of eBay's worth? Five percent of Microsoft's worth?

I am surprised. Very surprised.

StuartD · 10-25-2007, 08:10 AM

Quote:

Originally Posted by chodadog

You're not surprised in the least? A 1.6% stake at 240 million values Facebook at 15 billion dollars. That's fucking insanity.

Ford is worth 18 billion. GM is worth 22 billion. You're not surprised in the least that people consider a social network website to be worth nearly as much money as two of the world's largest car manufacturers? Just under half as much as Amazon.com? A little less than a third of eBay's worth? Five percent of Microsoft's worth?

I am surprised. Very surprised.

Ah, but information is power.
Those car companies and even amazon have a ton of value in assets, but store very little information about people.

Facebook is probably second to only wikipedia in sheer amount of information about over 50 million people.

Browse a few profiles and you'll begin to realize that some of the information stored within is priceless.

xNetworx · 10-25-2007, 08:31 AM

Quote:

Originally Posted by Mutt

aye carumba

it's an amazing site - talk about sticky, our models live on that site, i just go on there to see what they're up to and what it's like to be 19 in 2007. pretty jealous actually.

RawAlex · 10-25-2007, 08:47 AM

You have to read the whole deal to understand why it is worth that.

Microsoft didn't pay 240 million for a couple of pecentage points. They paid for a couple of percentage points and pretty much ALL of the ad space rights. It is hard to evaluate the true value of facebook based on this deal because first you would have to figure out how much of that 240 million went to getting ad rights.

I am suspecting that the actual value of 1% was something like 30 or 40 million (total value 3 - 4 billion) and the rest reflecting the ad deal. But for Facebook, this is a great win because now they can start selling of parts of the company for insane mega bucks because microsoft put a valuation out there for others to shoot at.

Drake · 10-25-2007, 08:52 AM

Simply amazing

tranza · 10-25-2007, 09:38 AM

That's just amazing.

Rodent · 10-25-2007, 01:04 PM

People that sold myspace are kicking themselves in the nuts now...

DamageX · 10-25-2007, 01:13 PM

Quote:

Originally Posted by Rodent

People that sold myspace are kicking themselves in the nuts now...

More like enjoying drinks in the sun on tropical islands.

OzMan · 10-25-2007, 01:16 PM

Quote:

Originally Posted by Rodent

People that sold myspace are kicking themselves in the nuts now...

no they are paying an assistant to kick them in the nuts but yeah, pieces of the pie would have been even better.

Vitasoy · 10-26-2007, 03:48 AM

Damn.. never knew face book was worth that much

After Shock Media · 10-26-2007, 03:57 AM

MS already has more than enough data on more than 50 million users, they just have umm how do you say... no legit way of using it without getting into trouble. For the most part mass amounts of data has been collected but never really attached to any particular person just groupings er random percentages and crap. Alas this would give them some mighty good cover to use information for once and to target the living hell out of those via advertising. Expect MS ppc to really reflect the sale soon. *all info is not from some source at MS, it is meer speculation and guessing

PS. Everyone, even MS knows the company as a whole is not worth five percent of MS value. MS also is and has had a huge cash abundance issue like Google. *repeat disclaimer.

gecko · 10-26-2007, 04:32 AM

the owner is 23yr old too.. I mean o snap

Violetta · 10-26-2007, 06:41 AM

wish I was the owner of facebook

Kevsh · 10-26-2007, 06:50 AM

People still haven't learned any lessons form the dot-bomb back in the late 90s. $16 billion for a site that makes no income, has no known business model and will almost certainly be passe by early 2009.

And now if Microsoft's actually involved in the site, you can expect things to stop working too....

yys · 10-26-2007, 08:51 AM

Quote:

Originally Posted by Kevsh

People still haven't learned any lessons form the dot-bomb back in the late 90s. $16 billion for a site that makes no income, has no known business model and will almost certainly be passe by early 2009.

And now if Microsoft's actually involved in the site, you can expect things to stop working too....

Some of the numbers i've seen floating around for facebook revenue in 2008 are in the 1 billion range and '09 over 1.5 billion.

StuartD · 10-26-2007, 08:53 AM

Quote:

Originally Posted by Kevsh

People still haven't learned any lessons form the dot-bomb back in the late 90s. $16 billion for a site that makes no income, has no known business model and will almost certainly be passe by early 2009.

And now if Microsoft's actually involved in the site, you can expect things to stop working too....

Makes no income and has no business model? Where do you get this from?

10-25-2007, 02:29 AM	#1
JuiceMonkey Confirmed User Join Date: Oct 2004 Location: Brisbane/Vancouver/SanFran Posts: 3,581	Microsoft buys Facebook stake for $240M SAN FRANCISCO - Rapidly rising Internet star Facebook Inc. has sold a 1.6 percent stake to Microsoft Corp. for $240 million, spurning a competing offer from online search leader Google Inc. Culminating weeks of negotiations, the investment announced Wednesday values Palo Alto-based Facebook at $15 billion ? a stunning figure for an online hangout started in a Harvard University dorm room less than four years ago. Microsoft also will sell Internet ads for Facebook as the site expands outside the United States, broadening a marketing relationship that began last year.. - http://news.yahoo.com/s/ap/20071024/...book_microsoft I guess holding out WAS worth it... well played __________________ ICQ: 72251955 GTalk: JuiceMonkey

10-25-2007, 02:32 AM	#2
deanberkeley Confirmed User Industry Role: Join Date: Sep 2006 Location: Texas Posts: 634	WOW, that is crazy! __________________ ICQ# 200-385-093

10-25-2007, 03:14 AM	#4
JuiceMonkey Confirmed User Join Date: Oct 2004 Location: Brisbane/Vancouver/SanFran Posts: 3,581	It's kind of nice to see google lose for once.. get some more competition into the game here. __________________ ICQ: 72251955 GTalk: JuiceMonkey

10-25-2007, 04:13 AM	#6
Shoehorn! Die With Your Boots On Join Date: Oct 2003 Location: Hawaii Posts: 22,872	Amazing. __________________

10-25-2007, 04:41 AM	#7
starpimps Confirmed User Join Date: Sep 2006 Location: internets Posts: 6,954	facebook makes ppl even dumber __________________ Teen Porn Models / Solo Girls

10-25-2007, 04:02 AM	#5
BerdoR Registered User Join Date: Sep 2007 Posts: 352	Facebook´s current audience nearly 50 million active users

10-25-2007, 04:48 AM	#8
StuartD Sofa King Band Join Date: Jul 2002 Location: Outside the box Posts: 29,903	I would never have guessed that Facebook has 300 employees... and it's insane to think that they'll have 700 employees next year. That's some insane growth in 5 years. __________________ This is me on facebook This is me on twitter

10-25-2007, 05:04 AM	#10
LadyMischief Orgasms N Such! Industry Role: Join Date: Sep 2002 Location: Oakville, Ontario Posts: 18,135	Social networking is the way people do things these days, and Facebook is among the most versatile of the social networking platforms. I'm not surprised in the least. __________________ ICQ 3522039 Content Manager - orgasm.com [email protected]

10-25-2007, 08:47 AM	#14
RawAlex So Fucking Banned Join Date: Oct 2003 Location: In a house. Posts: 9,465	You have to read the whole deal to understand why it is worth that. Microsoft didn't pay 240 million for a couple of pecentage points. They paid for a couple of percentage points and pretty much ALL of the ad space rights. It is hard to evaluate the true value of facebook based on this deal because first you would have to figure out how much of that 240 million went to getting ad rights. I am suspecting that the actual value of 1% was something like 30 or 40 million (total value 3 - 4 billion) and the rest reflecting the ad deal. But for Facebook, this is a great win because now they can start selling of parts of the company for insane mega bucks because microsoft put a valuation out there for others to shoot at.

10-25-2007, 08:52 AM	#15
Drake Hello world! Industry Role: Join Date: Mar 2003 Posts: 12,508	Simply amazing

10-25-2007, 09:38 AM	#16
tranza ICQ: 197-556-237 Join Date: Jun 2003 Location: BRASIL !!! Posts: 57,559	That's just amazing. __________________ I'm just a newbie.

10-25-2007, 01:04 PM	#17
Rodent Confirmed User Join Date: Mar 2001 Location: ReliableServers.Com Posts: 1,462	People that sold myspace are kicking themselves in the nuts now... __________________ Choopa.com Colocation \| Cloud Servers \| Dedicated Servers \| CDN 1000 Gbps Network \| NJ DataCenters

10-26-2007, 03:48 AM	#20
Vitasoy GFY HALL OF FAME DAMMIT!!! Join Date: Oct 2003 Posts: 58,202	Damn.. never knew face book was worth that much __________________ [email protected]

10-26-2007, 03:57 AM	#21
After Shock Media It's coming look busy Join Date: Mar 2001 Location: "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn". Posts: 35,299	MS already has more than enough data on more than 50 million users, they just have umm how do you say... no legit way of using it without getting into trouble. For the most part mass amounts of data has been collected but never really attached to any particular person just groupings er random percentages and crap. Alas this would give them some mighty good cover to use information for once and to target the living hell out of those via advertising. Expect MS ppc to really reflect the sale soon. all info is not from some source at MS, it is meer speculation and guessing PS. Everyone, even MS knows the company as a whole is not worth five percent of MS value. MS also is and has had a huge cash abundance issue like Google. repeat disclaimer. __________________ [email protected] ICQ:135982156 AIM: Aftershockmed1a MSN: [email protected]

10-26-2007, 04:32 AM	#22
gecko ****** Join Date: Jun 2002 Posts: 21,846	the owner is 23yr old too.. I mean o snap __________________ [email protected]

10-26-2007, 06:41 AM	#23
Violetta Affiliate Join Date: Jul 2004 Posts: 28,735	wish I was the owner of facebook __________________ M&A Queen

10-26-2007, 06:50 AM	#24
Kevsh Confirmed User Join Date: Dec 2004 Location: TO Posts: 8,619	People still haven't learned any lessons form the dot-bomb back in the late 90s. $16 billion for a site that makes no income, has no known business model and will almost certainly be passe by early 2009. And now if Microsoft's actually involved in the site, you can expect things to stop working too....