Microsoft Clinches Facebook Deal

Microsoft Corp., a company which needs no introduction, beat out rival Google Inc. on Wednesday in a battle to invest in socializing Web site Facebook, agreeing to pay $240 million for a roughly 1.6 percent stake in the Web phenomenon and expand a deal to sell advertising. Microsoft and Facebook stated that the $240 million investment valued Facebook at $15 billion, which analysts said was a steep price and a bet the young company would be able to transform itself into a hub for all sorts of Web activity. "The only way this works is if Facebook becomes sort of the users' operating system on the Internet -- everyone logs into Facebook every day to get in contact with their friends and use a multitude of future applications that will be developed for it," said Morningstar analyst Toan Tran. Read full story...

 


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