Microsoft vs. Google for Facebook: The software giant wins and pays $240 million for investment

Well the two giants went to battle for a 1.6 percent stake in Facebook, it was a straight fight Microsoft vs. Google and in the end it was the software giant who prevailed and paid $240 million in process. Also in the deal Microsoft have exclusive rights to sell ads on Facebook, but only outside of the US this is part of the investment which valued the phenomenon that is Facebook at $15 billion.

Although Microsoft think that they have got a good deal, many analysts think that the company paid a steep price on the hope that Facebook would be able to transform itself into something more. Reuters believe the reason that Microsoft paid so much for and why Google also had an interest, is the fact that the depth of knowledge that Facebook have about their users and this alone makes it very valuable to such companies, which they hope will be able to sell advertising which is targeted to each individual.