Facebook & Microsoft

When Microsoft purchased a 1.6% stake in Facebook late in 2007, some applauded but there were more who criticised. Mainly the price rather than the two companies linking up. Microsoft paid a whopping $240M for the 1.6% stake.

However, a couple of years on and it looks like, it may just have been worth it. According to eMarketer, Facebook is closing the revenue gap with the Portals and is predicted to make between $1-2 billion (USD) this year. (Compare that to the big 4 US Portals in the chart below.)

If they they reach the upper limit of that prediction, 1.6% will equal to $32m share of (although not profit, but) revenue. However, at the pace Facebook has been growing revenues in the last couple of years, that investment may just pay for itself sooner than many anticipated…

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