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See updates and confirmation below.
Microsoft has won a financial stake in Facebook, reports CNet News.com's Ina Fried, citing an anonymous source familiar with the situation.
The Wall Street Journal, Bloomberg News and New York Post have been reporting today that the social-networking site was close to choosing between Google and Microsoft in bids for a minority stake and for Facebook's advertising business outside the United States. Microsoft already has an ad deal with Facebook in the U.S.
Update, 1:30 p.m.: The companies are confirming the deal, and they have scheduled a 2 p.m. conference call. From the news release:
Facebook and Microsoft Corp. today announced that Microsoft will take a $240 million equity stake in Facebook's next round of financing at a $15 billion valuation, and the companies will expand their existing advertising partnership. Under the expanded strategic alliance, Microsoft will be the exclusive third-party advertising platform partner for Facebook, and will begin to sell advertising for Facebook internationally in addition to the United States.
More to come.
Update, 3 p.m.: Notes from the conference call:
However, he said, "We were very fortunate to have a lot of folks that were interested in partnering with us around advertising. We've been working with Microsoft for over a year now in the U.S., and it's a relationship that I think has been really great for both of us. ... It's a partnership that, six months into the partnership we decided to expand substantially in terms of the term of the relationship. Expanding that relationship beyond the U.S. borders to make it a global relationship was directly in line with all of those results."
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Microsoft, you really need to start looking for revenue elsewhere. Resorting to bribing users to use your products and services is just plain embarrassing.
-- Reader on Microsoft offers 'perks' to search users
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Posted by unregistered user at 10/24/07 12:56 p.m.
Maybe Microsoft can now make facebook work as fantastic as the Vista OS.