DM Experts - Expert Pages
Recent Posts Expert Categories
  Facebook: Worth $15 Billion?

By:
Jason Hahn - Topic: General Internet - Date: October 25, 2007
Yesterday, Microsoft beat out Google by grabbing a 1.6% stake in social networking giant Facebook.  Microsoft paid $240 million for the stake, which implies that Facebook's current valuation is $15 billion.

In return for handing Facebook a large sum of money it will use to expand its empire, Microsoft will gain a more prominent role in Facebook's advertising sales.  Prior to this event, Microsoft was only slated to provide banner ads in the U.S.  Now, they will be Facebook's advertising partner in an expanded role, both in the U.S. and abroad.

It should be noted that Web search is not a part of this deal.

While this is a proud moment for Microsoft, which has struggled mightily to beat Google at anything, it is probably an even bigger crowning moment for Facebook.  This $15 billion valuation certainly trumps Yahoo!'s $1 billion bid, and pushes Zuckerberg and crew (not to mention the VC firms backing Facebook) onto cloud nine.

So, is Facebook really worth $15 billion?  Is this another piece of evidence for the second coming of an Internet bubble (inflated by voracious companies, not investors this time)?  Will Facebook's luster fade away by next year?

Here is some more information about the deal:
http://www.news.com/8301-13860_3-9803907-56.html?part=rss&subj=news&tag=2547-1_3-0-20
http://www.businessweek.com/technology/content/oct2007/tc20071024_654439.htm?chan=top+news_top+news+index_top+story
http://www.redherring.com/Home/23036
http://www.npr.org/templates/story/story.php?storyId=15620630

 


 

- Affiliate Marketing
- Blogs
- Co-Reg
- DM University
- Email
- General Internet
- Incentive Marketing
- Lead Generation
- Marketing
- Marketing Tips
- Merger and Aquisitions
- Search
- Social Networks
- Web

DM Experts
- Adam Weil
- Colette Dill Lerner
- Danay Escanaverino
- David Rodnitzky
- Doug Garfinkel
- Evan Lovett
- Eyal Vadai
- Jason Hahn
- Jay Weintraub
- Jennine Rexon
- Laura Cruz
- Michael Goldberg
- Scott Pannier
- Sean Mulkeen
- Tanya Alvarez
General Internet
Clickbooth.com The First to Go Above and Beyond with Top Notch Industry Experts Affiliate managers are a dime a dozen, at Clickbooth my team is made up of Affiliate Strategists," s More...

Market Mayhem Part II Here's what we learned in Part 1, and we'll start with the bad news. If the past twelve years have t More...

Vantage Media Continues Expansion into Home Services Signs Exclusive Marketing Agreement with Allied Van Lines More...

Neverblue Welcomes New Vice President of Sales and Business Development Neverblue Media Inc., a premier global lead generation network, today announced the addition of Mark More...

Is there room for my company in the affiliate-marketing world? The rapid growth of the Internet and online services worldwide is only the beginning of a long-lived More...

TV Still Going Strong While online and mobile video consumption is on the rise, traditional TV viewing seems to be unhinde More...

Hulu Cracks Top Online Video Properties List Google (thanks mostly to YouTube) and, to a lesser extent, Fox Interactive Media have been the two d More...

France, Italy, Australia See Strong Internet User Growth According to Nielsen Online, France, Italy, and Australia experienced strong growth in the number of More...

iLegal - Internet Advertising - Suppression List Compliance As part of a continuing series on compliance issues in the affiliate marketing industry, this week w More...

Offers to the Gallon While outrageously high from a historic perspective and tragic in many cases, foreclosures impact a More...