Thursday, October 25, 2007

Microsoft Gets A Piece of Facebook

The highly popular social networking web site has struck a deal with Microsoft for $240 million, providing Microsoft with 1.6% of the company. This means that Microsoft and Facebook value Facebook at $15 billion. This is truly amazing when you consider the projected revenue for Facebook this year, which is $150 million. It is tough to say whether or not Facebook is worth $15 billion although many people would agree that the web site has a bright future and will continue to play a major role throughout the Internet. This seems like a wonderful deal for Facebook, who just a year ago was being valued at $1 billion by Yahoo!.
Facebook is currently receiving 54 billion page views per month and they have 49 million active users (and growing). A Facebook visitor stayed on the website for an average of 14 minutes during each visit this past August. Facebook is one of the top ten most visited web sites in America.
It is believed that Google also made a run to get a piece of Facebook but fell short. We can be sure that both Google and Microsoft will target Facebook down the road.

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