Facebook launches Mobile, Takes $240 Million Investment from Microsoft

61 thoughts on “Facebook launches Mobile, Takes $240 Million Investment from Microsoft”

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  2. Well. Good deal. Sounds like microsoft made a safe investment, easy recovery with the ads. This way they can also analyze how facebook turns up in a couple of years and will be in a position of more accurate valuation.

  3. Om:

    I don’t think that MSFT expects to make money on the $250MM at a $15B valuation. Internally for them it is a $250MM investment to get an exclusive advertisement deal over the next 4 years. The 2% stake is only icing on the cake. Had they announced that they have given $250MM to Facebook for a 4 year exclusive ad deal, no one would have flinched, this is cheaper than the Google/MySpace deal.

    I think it would be naive of us to think that MSFT is looking at doubling its $250MM investment. Locking in a potential ad platform on the other hand is lucrative.

    On that note, I doubt that there will be other investors, because the returns on a $15B valuation is probably none to negative.

    All this is great PR for Facebook though.

  4. Hi Om,

    I have been more often that not seeing these weird comments on almost all of your threads. Is it some spam or it actually signofies something.
    For eg:
    […] GigaOM (live conference coverage) […]

    PolkaRobot » Facebook entscheidet sich für Microsoft on October 24th, 2007 at 3:05 pm – #
    on this article.

  5. Nothing against Microsoft but they have this tendency to pretty much f*** things up that they acquire and haven’t build themselves. Just hoping that the same thing doesn’t happen to facebook

  6. Eek Facesoft is watching you! All this talk of contextual ads based on my social stream is Minority Report creepy, so I’m talking about Paris Hilton’s recent morale boosting visit to Baghdad in my Facebook news feed and an ad for The Hilton Hotel, Tikrit pops up, boy that $9 as much as you can eat, suite and hooker deal sure looks tempting… er no.

    Facesoft is watching you and when did we all think we could get everything for free? How about we all paid $1 per week for Facebook, so that’s $1 x 40 million per week, a tidy income… I vent my spleen and discuss my dreams being interpreted by a virtual psychotherapist serving me real life pop-up ads for lady shavers over at Fat Man.

    Great article Om, thank you.

    Adam

  7. Wholly Cr*p! 15 BILLION???

    I think the net has turned into an electronic Coney Island. Where the hawkers are yelling from site to site, “Come on in, step right up…”. There’s a sucker born every minute. Here…click on this banner NOW!

  8. Microsoft investment is creating too much hype. It is good for Microsoft but going to be bad for general investors as I feel $15B valuation is insane!. Media is contributing to it. I doubt even half of the Facebook users are actively using Facebook. All media talks about Facebook but very few talks about what added benefit they provide which other sites like Yahoo do not provide. I believe Yahoo already has many of the social networking features in place and they will keep adding to it.

  9. Where’s the justification for that valuation? How many users do they have now? 50m? 100m? That valuation puts a $150-300 price tag on each account in their app. How many of those are even active or semi-active?

    This is just hilarious without some sort of number justification to back it up and even if they could play the numbers right, it would still be extremely excessive in my opinion.

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  11. Facebook is very wise to take that money from Microsoft.

    They are too rich and don’t know what else to do with their billions of dollars.

    But all the social networking portals should be cautious about how much ads from third parties they display because most of their users are really averse to advertising.

  12. The saying keep your friends close, and your enemies closer is so true when it comes to Microsoft. I for one love most of the technology they come up with, its definetely made my lifestyle/career/everything possible. And I think its creations bring innovation in its competitors. This minor investment allows them to stay close to a potential rival/investment which may have gone to one of its biggest enemies Google. But beware Facebook lovers/members, history has shown that companies acquired in whole or part by Microsoft, tend to disappear or become so unrecognizable that they seem to disappear. That would really blow, because although I don’t subscribe to Facebook (I MySpace!) I think its important to have competition, or frankly $h!t don’t change and we are doomed to an eventual demise of complacency. So please Microsoft try to learn from your past mistakes, let Facebook be Facebook, and you might still make the money you want without assimilation.

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