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Microsoft has just made a move on one of Silicon Valley's hottest pieces of property.

For weeks, rumors were swirling that Microsoft was wooing Facebook and considering investing in the social networking giant.

True to these rumors, the pair has finally gone public about their new partnership.  Microsoft has agreed to fork over $240 million USD to gain a minority share in Facebook.  The move gives it only a small percentage – approximately 1.6 percent -- of Facebook's net worth.  However, even such a small commitment between these two giants will likely have major ramifications in the software and internet industry.

According to accounts, internet media giant Google was narrowly beat out in intense negotiations by Microsoft.

The move raises Facebook's net worth to approximately 15 billion dollars. Interestingly this means that if each of the 50 million users of the social network had a price attached to them, based on the site's next worth, each would be worth approximately $306.12.

The move grants Microsoft some special benefits.  Microsoft gains exclusive rights to sell Facebook advertising.  Facebook's advertising reaches an international market of millions, so this is very useful.  Microsoft has already begun to sell ads on Facebook, as of yesterday.  The deal will last until 2011.

Like any good partnership, there is plenty of sharing -- the revenue from the advertisements will be split between Microsoft and Facebook.

Facebook certainly has its own perks, too -- it gets a large cash infusion, which it can use to hire new developers and expand its resources.  Facebook announced it plans to expand from its current 300 employees to nearly 700 within a year. It also gets assistance developing a robust advertising system.

The move is definitely a win-win for both parties. Kevin Johnson, president of Microsoft’s Platforms & Services division discussed the excitement about the new pairing:

The opportunity to further collaborate as advertising partners is a big reason we have decided to take an equity stake, and is a strong statement of our confidence in the long-term economics of this partnership.  We’re very pleased with the scope and depth of our partnership.  It’s a big industry.  The equity stake we’re taking is a strong statement of confidence about this partnership.  Just sit back and watch how this partnership develops.  There’s a lot we’re going to do together.

Facebook was considered one of the most attractive software companies due to its torrid growth.  The network has been doubling its user base every six months.  Its growth has dramatically outpaced its chief rival in online social networking,

Mark Zuckerburg, the creator of the network, and its CEO, often draws comparisons to Bill Gates.  He also has been the target of some recent suits from former classmates who claim he stole their idea (which may perhaps further increase comparisons to Gates).

Microsoft is not Facebook's only new interest, though.  Facebook has just entered into a partnership with Blackberry to make "Faceberry" phones...Blackberry phones preloaded with Facebook access and functionality.  Facebook's new software for the Blackberry will make use of its push email system to access user's accounts.  Users will even be able to take pictures and create tags for them.

Facebook also recently announced grants of up to $250,000 for software developers who can present new ideas for Facebook applications, as reported at DailyTech.

The future is certainly looking bright for Facebook.  With its new partnership with Microsoft, the world's largest tech partnership, an exciting world of possibilities opens up to the network and its users.

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By FITCamaro on 10/25/2007 9:35:58 AM , Rating: 2
You know while I have an account on facebook just in case someone from my past wants to get ahold of me, I really see little value in the site. If it died tomorrow, I wouldn't know or care (well I'd know when in say 2 months I tried to log in and it wasn't there).

I guess some people though like everyone else to know what they're doing and thinking at any time.

RE: Pointless
By mdogs444 on 10/25/2007 9:41:46 AM , Rating: 3
Im with you on that. I had a Facebook since quite a while back, but I log in like once a month or so. This is only becuase my email box gets so full of messages from Facebook that I have to go onto the site and delete them. I dont really have a use for the site, but I think its target is to get as many people on the network as possible, then have the ability to flag ads towards a population of 50+ million people.

Also, by these users subscribing to different "plug-ins" for the site, as well as their profiles, it also enables MS to push out ads that are directed towards the users interest. Pretty good marketing in my opinion.

RE: Pointless
By Brandon Hill on 10/25/2007 9:42:33 AM , Rating: 3
Yeah, I just missed the "hump" for whatever sparks humans to want to join up to MySpace or Facebook.

Most of my friends live in the same city as me, so if we want to get together we actually **gasp** go to each other's house, or go out to eat or go to a NC State football/basketball game or whatever.

For the few that live out of town, a quick phone call is sufficient and if not... ROAD TRIP!

The internet can never replace human contact or actual voice conversations for me.

RE: Pointless
By FITCamaro on 10/25/2007 9:59:48 AM , Rating: 3
Yeah I live 2 states away from where I went to school.

The internet can never replace human contact or actual voice conversations for me.


RE: Pointless
By Brandon Hill on 10/25/2007 10:07:09 AM , Rating: 2
The one close friend of mine that lives out of state lives in Charleston, SC.

I can never say no to a road trip to Charleston :P

RE: Pointless
By mdogs444 on 10/25/2007 10:16:15 AM , Rating: 2
Nor can I. I have a condo in Charleston, and can never pass up a round of golf at Crowfield.

RE: Pointless
By FITCamaro on 10/25/2007 11:15:43 AM , Rating: 2
I live in Charleston, SC ;)

RE: Pointless
By FITCamaro on 10/25/2007 11:17:39 AM , Rating: 2
Damn no edit button.

I'll buy you a drink next time you're in town. Wild Wings is always good for a drink and some wings.

RE: Pointless
By mdogs444 on 10/25/2007 11:20:14 AM , Rating: 2
Sounds good. I was just there about two weeks ago. In fact, i stayed at our condo in charleston for 2 days, and then up in Santee for 5 days on a golf trip. Santee is quite a funny place, nothing around but hole in the wall strip clubs.

RE: Pointless
By FITCamaro on 10/25/2007 11:37:25 AM , Rating: 2
Feel free to hit me up @gmail.

RE: Pointless
By mdogs444 on 10/25/2007 11:49:09 AM , Rating: 2
Will do for sure. I go to that area about 2-3 times per year to get away from the midwest.

Maybe ill hit you up today and see what you think about the new proposed democratic tax plan, since i know you are a big fan of that lol.

RE: Pointless
By FITCamaro on 10/25/2007 12:35:20 PM , Rating: 2
RE: Pointless
By mdogs444 on 10/25/2007 1:10:59 PM , Rating: 2
Haha, thats great. Gotta save that for my wallpaper at work!

RE: Pointless
By SandmanWN on 10/25/2007 1:44:37 PM , Rating: 6
I just wanted to point out the awful irony of two people dissing an online site like facebook for people using it for networking and meeting people and then you two just exchanged emails and planned a meeting over another online site DT.

That is all.

RE: Pointless
By mdogs444 on 10/25/2007 1:48:41 PM , Rating: 2
Yes, thats because we view DT as a dating site, as opposed to a cyber sex site.

Hows that for irony? jk.

(and btw, when did i diss Facebook? I just said I dont use it)

RE: Pointless
By KristopherKubicki on 10/25/2007 1:57:26 PM , Rating: 4
Yes, thats because we view DT as a dating site, as opposed to a cyber sex site.

Hah. Lies. :)

RE: Pointless
By mdogs444 on 10/25/2007 2:00:03 PM , Rating: 2
Geez Kris - we werent going to out you!

RE: Pointless
By FITCamaro on 10/25/2007 2:10:29 PM , Rating: 2
Now I'm afraid...

RE: Pointless
By mdogs444 on 10/25/2007 2:12:14 PM , Rating: 2
LOL. Notice that we are making fun of people more on this DT post than actually talking about the subject?

RE: Pointless
By Samus on 10/25/2007 7:41:30 PM , Rating: 2
So while we're at it, any peeps from Chicago? ;)

RE: Pointless
By mdogs444 on 10/25/2007 7:46:36 PM , Rating: 2
I actually just moved to Columbus Ohio from Chicago about 6 months back. I lived in Naperville for 1 year, Oak Brook for 1 year, and West Loop for 2 years....

RE: Pointless
By Spivonious on 10/25/2007 11:24:56 AM , Rating: 2
I feel leftout; I've never been to Charleston.

RE: Pointless
By FITCamaro on 10/25/2007 11:39:01 AM , Rating: 2
We don't like you. =p


RE: Pointless
By mdogs444 on 10/25/2007 11:41:35 AM , Rating: 2

RE: Pointless
By glitchc on 10/25/2007 11:58:22 AM , Rating: 5
Who needs Facebook when you have DT? (See posts above)

RE: Pointless
By blaster5k on 10/25/2007 10:19:35 AM , Rating: 5
The internet can never replace human contact or actual voice conversations for me.

And for most people who use Facebook, it doesn't. It's just another tool in the arsenal.

It's a good way of keeping up with a large number of people who are spread throughout the country. It's a good way to share photos (with privacy restrictions), make sure everyone is invited to events, etc. When you're hosting a party, you really don't want to call up 100 or more people and even managing that through e-mail is tough.

Sure, you don't have to use Facebook for this kind of stuff. You can design an airplane on a drafting board too, but nowadays people tend to use CAD software.

I suppose it all depends on your needs. If you've got a small group of close friends who live nearby, maybe it doesn't benefit you as much.

RE: Pointless
By clayclws on 10/25/2007 10:40:17 AM , Rating: 4
How about having close friends spreading across continents? I'm in Malaysia, friends are in several countries in Europe, America, Australia, New Zealand, Korea and China. Road trip, Brandon?

RE: Pointless
By mdogs444 on 10/25/2007 10:47:26 AM , Rating: 2
You could fly or take a boat!

RE: Pointless
By Brandon Hill on 10/25/07, Rating: 0
RE: Pointless
By omnicronx on 10/25/2007 11:07:30 AM , Rating: 5
Or; Telegraph , Carrier pigeon , and for the rocket scientists out there, Styrofoam cups with a very long string .

RE: Pointless
By omnicronx on 10/25/2007 11:03:40 AM , Rating: 4
Or you can use an instant messenger...

If they are not on your MSN/AOL, you are probably stalking them anyways!

Omni:"Hey hot girl, I swear i was in your grade 1 class, wanna make out?"


RE: Pointless
By FITCamaro on 10/25/2007 11:40:13 AM , Rating: 2

RE: Pointless
By Master Kenobi on 10/25/2007 1:09:15 PM , Rating: 2
Yes, I found that quite amusing.

RE: Pointless
By borowki on 10/25/2007 12:37:12 PM , Rating: 4
You're missing the point completely. The reason many people found Facebook useful is that it allows them to maintain friendship with people who aren't really their friends anymore. I have a "friend" who works in Kabul, for example. If I contact her directly, what am I going to say? "The weather's is crappy here in Europe, but at least we got no suicide bombers?" We have nothing to talk about. Yet, it's benefitual to keep in touch.

RE: Pointless
By blaster5k on 10/25/2007 1:03:48 PM , Rating: 1
A somewhat cynical way of looking at it I think. You can still be friends with people even if they've moved away, but not with that kind of an attitude.

RE: Pointless
By SirLucius on 10/25/2007 2:33:59 PM , Rating: 2
I think he was speaking more to keeping in contact with acquaintances. I am "friends" with plenty of people of Facebook that I don't hang out with regularly or would even really consider to be a "friend." I have nothing against them, but I don't know them well enough to call them anything more than a casual acquaintance. In this sense, Facebook is a great way to keep in contact with people you wouldn't be comfortable calling up just to shoot the breeze or hang out with outside of a social situation.

RE: Pointless
By kinnoch on 10/25/2007 2:45:42 PM , Rating: 2
His point is that you know a lot of people, but even the most social person can only keep in close contact (or care to keep in close contact) with so many people. this doesn't mean that its not beneficial to keep some minimal amount of connection with some one you haven't seen for years. In fact a facebook update could bring old friends back together. I know i got back in contact with an old high school friend after I saw some incredible photos he had posted on facebook due to a common interest in photography.

RE: Pointless
By Oregonian2 on 10/25/2007 4:51:25 PM , Rating: 2
Well, the football game would most likely be a very sad event this year (give TOB a few more years), but Sid's team should be very fun to watch this year. Send me planefare, I'd love to go to the game too.

Not in Raleigh anymore...

What's facebook.....? :-)

RE: Pointless
By coldpower27 on 10/26/2007 12:41:51 AM , Rating: 2
Of course not Facebook just allows me to have an extensive list of nearly all the people I know, face to face contact is important so from there we make events where large groups of people can go in person.

It's great for finding lost people from the past though.

Yes, face to face relationship is important.

RE: Pointless
By spluurfg on 10/26/2007 6:26:55 AM , Rating: 2
Well then you should count yourself very lucky. Most of my friends are a thousand or more miles away, in various time zones, and themselves very busy. While not a substitute for human contact, it's a lot better than nothing. Facebook is useful because you can get in touch with people whether or not their email address or phone number changes (for me it's a bit of a self updating address book). Personally I feel the other features are just bells and whistles.

RE: Pointless
By jtemplin on 10/25/2007 9:58:07 AM , Rating: 2
If you don't get it, you don't get it. (Thanks Washington Post!)

I am finishing up my undergrad, and I was one of the first people I knew to create a Facebook account way back in Fall 02. When it first started all the friends I had declared on Facebook lived less than a 2 minute walk away from me. Clearly we were not using it as a substitute for face to face interaction.

It is nice to be able to send out party invitations, mass mailings etc. It definitely has a useful purpose, it just depends on how many people YOU know that also use it. In my case everyone I know uses it, so it turns out to be quite useful.

RE: Pointless
By Brandon Hill on 10/25/2007 10:02:39 AM , Rating: 2
Party invitations?

What about

RE: Pointless
By mdogs444 on 10/25/2007 10:08:43 AM , Rating: 2
Good call - Facebook has limitations on it in which to receive the invite you must have a Facebook account. However, the layout of the Facebook inviation section is very nice.

RE: Pointless
By coldpower27 on 10/26/2007 12:46:52 AM , Rating: 2
There is no such restriction, I have sent invitations to people without Facebook through Facebook, and they can see all the information.

RE: Pointless
By blaster5k on 10/25/2007 10:27:18 AM , Rating: 2
I don't think is anywhere near as good at managing events, largely since it requires you to deal with e-mail addresses. It might accommodate those few Facebook holdouts, but I don't know very many of them.

RE: Pointless
By Brandon Hill on 10/25/2007 10:36:06 AM , Rating: 2
But sending a Facebook invitation requires everyone to have a Facebook account...

The number of people that have email addresses far outweighs the number of people that have Facebook accounts. I mean, even my grandma has an email account and regularly checks it.

RE: Pointless
By blaster5k on 10/25/2007 12:54:20 PM , Rating: 2
Yeah, but in my age range (mid-20s), basically everyone has an account, so it's a non-issue. E-mail addresses change. Phone numbers change. Facebook persists.

RE: Pointless
By Master Kenobi on 10/25/2007 1:11:50 PM , Rating: 2
I would have to disagree. I don't know anyone personally that has a facebook account.

RE: Pointless
By MADAOO7 on 10/25/2007 1:57:33 PM , Rating: 3
Your then probably not the target demographic. While now open for anyone to join, it was made for the college audience. I can't think of anyone at UF (where I'm at), who doesn't have an account. I'm a Resident Assistant for a dormitory, and making events and sending it out to a very specific group of people can't be easier. is dumb. Who in the world keeps an updated list of 500+ peoples email? (friends, staff, academic club lists). I don't need to know if Joe Blow changed his email from to .75% of my classes have groups on facebook to send out canceled class messages, and share notes for missed lectures. It also integrates media extremely well. For example, I have a History of Rock and Roll class, which a TA created a facebook group for. I can watch relevant youtube videos from class, create a study group, and contact class mates. O, and I talked to this really great looking girl, but what was her name....ok here's her picture....right...Mindy.....(message Mindy). Sarcasm aside, you can see it has practicality if you're in their target market.

RE: Pointless
By xti on 10/26/2007 7:03:03 PM , Rating: 2
keggars @ ?? lol..

The invite system for say a college campus organizations is heavily, heavily used for any kind of events that you want to publicize free and to the masses where you can hit 75% of the people (i'm talking students since thats where facebook started) in one fail swoop in your community.

keggar, community clean up, protests, etc are always successful because of this. Orgs on campus when I was there moved away from paper flyers and just did this online.


RE: Pointless
By wrekd on 10/25/2007 10:11:00 AM , Rating: 2
You and your friends have been datamined. Big Brother is watching you! And Starbucks and Target and the Larger Penis Buraeu and Capitol One too!

Guess whats in their wallet?...It's YOU!

RE: Pointless
By mdogs444 on 10/25/2007 10:21:31 AM , Rating: 3
Seeing as how I already have Target & Capitol One credit cards, their datamining is useless. I love Starbucks coffee - caramel machiatto is great - and I am a proud "member" of the LPB.

Woot woot!

RE: Pointless
By michal1980 on 10/25/07, Rating: 0
RE: Pointless
By derwin on 10/26/2007 3:08:44 PM , Rating: 2
It is nice when you are friends with many separate groups of people. You can find intoxofests when you havent even seen those people for months. Being in college, i find it amazingly useful.

Without it, i would be much more lonely whilst drunk.

Sarcasm aside, I would be at a lost if the site were to die off. Which is why MS putting ads on it has already sucked.

What is it?
By Senju on 10/25/2007 12:34:25 PM , Rating: 2
I dont understand. What is facebook?
I never heard of this company until today.
It is some type of photo album utility?
Does anyone know what software they have?

RE: What is it?
By FITCamaro on 10/25/2007 1:00:42 PM , Rating: 2
They make nuclear launch control systems.

RE: What is it?
By mdogs444 on 10/25/2007 1:12:46 PM , Rating: 2
They are the world most proficient manufacturer of flux capacitors.

RE: What is it?
By Zelvek on 10/25/2007 1:57:20 PM , Rating: 2
They make nuclear launch control systems that can launch time traveling ICBM's at a minimum velocity of 88 mph. Facebook was also founded by the illegitimate grandson of Dr. Emmett Brown.

RE: What is it?
By mdogs444 on 10/25/2007 2:01:20 PM , Rating: 2
Wasn't his name Marty?

RE: What is it?
By Zelvek on 10/25/2007 2:22:21 PM , Rating: 2
Marty was doc Brown's assistant and the main character but doc Brown was the inventor.

RE: What is it?
By FITCamaro on 10/25/2007 3:43:55 PM , Rating: 2
Nope. Bubba.

RE: What is it?
By Ringold on 10/25/2007 3:06:40 PM , Rating: 3
They're also headquarterd at Black Mesa, New Mexico.

RE: What is it?
By FITCamaro on 10/25/2007 3:41:50 PM , Rating: 2
Are said ICBMs shaped like Deloreans?

RE: What is it?
By Scrogneugneu on 10/25/2007 11:11:28 PM , Rating: 2
You guys are so a bunch of moronic geeks.

And I love you so much for that. Always a pleasure to find mates ^_^ Thanks for making me laugh :P

+1 for successfully using irony on a DT comment without getting modded down to -1.

the secret
By thejez on 10/25/2007 9:54:41 AM , Rating: 4
facebooks popularity can be attributed to one thing:
The huge pile of internet polution has become. If myspace didnt suck so unbelievably bad facebook would have never gotten any traction.... but since they have a cleaner, better performing site it will pretty much take over this space. The plug-in thing helps too since the members can basically make the site better for them....

RE: the secret
By tspinning on 10/25/2007 10:57:10 AM , Rating: 4
Sorry but that's not entirely true,

Facebook started out as all great things do, private, "elite", special. ({{(OiNK)}})

You had to have a .edu email account and attend a college to be a member, believe it or not, this did weed out a majority of the retards, they didn't make it to college remember. Also the sites lack of (THANK GOD) html meant that people couldn't use the [blink] code that drove all the rest of us nuts, or embed insane java script to induce seizures after a moments viewing, or blast you with the new puff daddy song or start playing 5 YouTube videos.

However, if you had already graduated college, you probably never bothered to join when the book opened it's doors, or if you did, you forgot half the people you used to meet at the local keggers.

Younger generations have much larger social pools to swim in then anyone before, it's impossible to keep in touch with everyone you ever knew, but all the old classmates that you associated with in the halls might like to see you from time to time, or know when you get married, for this, Facebook's easy to use, clean interface is tops.

Also allowing small developer content is engaging a new sect of programmers to create. Nothing wrong with this!

RE: the secret
By xti on 10/26/2007 7:05:15 PM , Rating: 2
if you add me as your friend on myspace you can hit double digits!!!

My problem...
By Brandon Hill on 10/25/2007 11:14:48 AM , Rating: 2
My biggest problem with the whole Facebook/MySpace phenomena is that I'm a rather private person. It's not that I'm shy or anything -- I'm actually quite the opposite.

It's just that I don't like talking about myself or showing pictures of myself to everyone or just putting myself out there. Sure, I know that you can set your page to private or whatever, but when it comes to "me," I like to do things on my own terms.

I also see a lot of these MySpace pages and think of narcissism... not that there's anything wrong with that if you're into that sort of thing.

My life is relatively boring, and there's really not much if anything that I'd want to really share. And all of my friends already know my inner workings/personality/aspirations anyway, so a web page is pretty superfluous.

For those that I don't keep in close contact with, I probably wouldn't be telling them my inner most secrets anyway ;)

RE: My problem...
By mdogs444 on 10/25/2007 11:22:14 AM , Rating: 2
Then I guess you will not be able to act like Kip, meet your own Lafawnduh online, and chat with hot babes all day.... lol. Thats what MySpace is for, IMO.

RE: My problem...
By FITCamaro on 10/25/2007 3:46:13 PM , Rating: 2
My biggest problem with the whole Facebook/MySpace phenomena is that

nobody likes me. :)


Uh... Clarification?
By Polynikes on 10/25/2007 12:29:26 PM , Rating: 2
The move grants Microsoft some special benefits. Microsoft gains exclusive rights to sell Facebook advertising.

Exclusive in what manner? You're not telling me MS is the only one advertising on the site, are you?

Like any good partnership, there is plenty of sharing -- the revenue from the advertisements will be split between Microsoft and Facebook.

What percentage does MS actually get? I mean, I know they pumped millions into the company, but they still only own 1.6% of the company.

RE: Uh... Clarification?
By Oregonian2 on 10/25/2007 4:56:29 PM , Rating: 2
Yeah, the pre-bubble mentality is back. Pocketbooks full of money and nothing to buy but over-inflated companies -- so buy it anyway at obscene prices ("hey! it's better than letting it sit in the bank!" .... NOT).

Ebay did "Skype", so Microsoft wanted to counter with an even better money wasting record with FaceLift, or whatever it is. At least Skype is useful and is profitable (just not worth what was paid for it, ROI is forever). Is facebook profitable?

By Murst on 10/25/2007 9:41:38 PM , Rating: 2
So is facebook like linkedin? I thought it was a pic sharing site.

RE: Hmm
By coldpower27 on 10/26/2007 12:53:35 AM , Rating: 2
LinkedIn was targeted at businesses I believe from what I recall, but the concept is similar.

You can do all kinds of things on Facebook. Wall messages, privates message, posting albums, profile, etc etc.

By wushuktl on 10/25/2007 9:45:00 AM , Rating: 2
I had no idea. I remember using facebook when it was just starting out i had no idea it's gotten that big and is worth that much money.

By drunkenmastermind on 10/25/2007 7:36:22 PM , Rating: 2
I think facebook is great, in my 30yrs of living on this planet I have had many different friends but this is the only site that I have seem pull them all together in one online medium. I think it's great and it must be to have a 50 billion $ "tag" ;)

$15 Billion???
By yost007 on 10/26/2007 12:51:07 PM , Rating: 2
How in the world is Facebook worth this much money? I do not know exactly how they came up with this but I bet to say that the actual true value is much less than this. They must make ALOT of money from ads.

sounds like
By senbassador on 10/27/2007 4:39:35 PM , Rating: 2
Sounds like they're just doing this for "bragging rights". Facebook is just another "trophy company" which isn't really worth anything and buying up shares of these doesn't seem much different when large companies buy large expensive nice buildings and expensive artwork. Not that I have anything against facebook or expensive art, but its really something nice to have under your belt as a trophy for prestige than something of concrete value.

"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs
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