As mentioned in previous posts, Microsoft won a 1.6% share of Facebook for a whopping $240 million, signing a deal to that allows Microsoft to take care of Facebook's advertising for international users.
This represents a major win for Microsoft, whose web advertising is a fledgling baby compared to Google. With 60% of Facebook's 49 million users being abroad, Microsoft has just gained access to 29.4 million users who post detailed information about their likes, preferences, books, movies, music, etc. This data repersents an advertising bonanza for Microsoft. The deal guarantees that Microsoft will retain the rights to advertise to international users through 2011, essentially keeping Microsoft in through Facebook's soon-to-be IPO and its first couple of years as a public company.
Google declined to comment, but did mention that they would soon allow Facebook's 4000 developers (who use Facebook's API's) to gain access to Adsense, essentailly allowing Google a backdoor entrance into Facebook.
It also seems that MySpace should have waited to sell their company, as they only received $550 million from Fox in 2005, and have a much larger user base of over 70 million. Google currently advertises on MySpace.
While some analysts are worried that Microsoft paid too much, I believe that Facebook will continue to grow. Expect Facebook to go public soon, and Microsoft's ad revenues to increase.
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