Microsoft Takes 1.6% Stake in Facebook For $240 Million

OPW -- Oct 24 -- Facebook is valued at $15 billion based on their ad deal with Microsoft. You can expect more investment money to flow into the social networking space based on this valuation. Do you think this will have positive repercussions for the online personals industry and internet dating company valuations? - Mark Brooks

Comments

[Allan Mooney]

Personally, this valuation is a bit off, actually it is way off. This is more of an EGO trip for Microsoft than a justly cause. Anybody in the industry knows this, once again this proves how crazy these big companies are with their money. Im glad I do not manage my own money like this or I would be broke.

[Saïd Amin]

Hello Allan,

In any industry, online, housing, or otherwise, you are only worth as much as someone is willing to pay for you. MSN has an incredible market cap, they have money to burn and gamble with...seems like they are willing to risk a "mere" 240 million investment in Facebook. Pls remember, that this is tame compared to Google's 900 million advertising deal with MySpace.

The returns for MSN, may (or may not) be much greater...in online terms, the price of not acting on an opportunity like this are far greater than getting in the game and intelligently rolling the dice...I hardly think that this is an "ego" thing as much as it is a business roll of the dice.

Time will tell.

One,
-Saïd