Facebook + Microsoft: What do you think?

After much discussion, and presumably a very competitive auction, Facebook has agreed to sell 1.6% of the company to Microsoft for $240 million, placing Facebook’s valuation at the much-discussed $15 billion level.

So rather than re-state all the facts from the press release, I ask you was this a good deal and if so, for who?

Clearly, this helps Microsoft win a round with Google. Facebook, well, they and their VCs can be happy about the results of this transaction. As many suggest, this will give Facebook the cash it so desperately needs to expand.

As for Google, this isn’t really a big deal at all. They’ve got Orkut, which does incredible traffic albeit in Brazil and India. Besides, if the stock price keeps heading to the moon, they can just dive in and buy the whole thing, that is unless Microsoft has the right of first refusal. I guess we’ll see, but this one seems to have just begun.

What do you think?

Tags: Facebook, Microsoft, Google, Investment, Valuation

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