Social Networking Watch

Oct 24 -- I just got an email from Microsoft stating that they are announcing a partnership with Microsoft 2pm PST. Here's some info from the press teleconference. Microsoft President Kevin Johnson and Facebook’s VP of Operations and Chief Revenue Officer Owen Van Natta to be on the news conference. - Mark Brooks

Microsoft will take a $240 million equity stake in Facebook based on a $15 billion valuation.  That's $240 million for a 1.6% stake!  Microsoft is now the exclusive ad partner for Facebook through 2011, supplying banners through to search.  Facebook is adding 200,000 users a day, is doubling their userbase every 6 months and plans to grow to 700 employees next year.
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Facebook and Microsoft Expand Strategic Alliance

PRESS RELEASE — Oct. 24, 2007 — Facebook and Microsoft will expand their ad partnership and Microsoft will take a $240 million equity stake in Facebook’s next round of financing at a $15 billion valuation. Under the expanded strategic alliance, Microsoft will be the exclusive third-party ad platform partner for Facebook, and will begin to sell advertising for Facebook internationally in addition to the U.S. ~60% of Facebook’s users are outside the U.S. On Aug. 22, 2006, the companies announced a U.S.-only strategic alliance that named Microsoft the exclusive provider of standard banner advertising on Facebook using Microsoft’s digital advertising solutions and the Microsoft® adCenter platform. In early 2007, the terms were extended to 2011.  FULL PRESS RELEASE @ MICROSOFT

Mark Brooks: Zuckerburg drove a hard bargain. One month ago The Times reported that Microsoft was looking for a 5% stake in Facebook for $300-$500 million, to put Facebooks value at ~$10 billion. Now Facebook is firmly pegged at a $15 billion valuation. That will fuel a new wave of investment in the social networking industry.