Microsoft Makes Facebook Investment

PALO ALTO/REDMOND, October 25: Microsoft is making a
$240-million investment in the social networking site Facebook, giving it a
1.6-percent stake in the popular site, valued at $15 billion.

As part of the investment, Microsoft will be the exclusive
third-party advertising platform partner for Facebook, and will sell
advertising for the site both in the U.S. and internationally.

Owen Van Natta, the chief revenue officer at Facebook, said
the expanded alliance would allow the site “to continue to innovate and grow as
a technology leader and major player in social computing, as well as bring
relevant advertising to nearly 50 million active users of Facebook.”

“Making this investment and expanding this partnership will
position Microsoft and Facebook to better take advantage of advertising
opportunities around the world, and is a great win not only for our two companies,
but also our collective users and advertisers,” said Kevin Johnson, the
president of the Platforms & Services Division at Microsoft. “We have
partnered well over the past year and look forward to doing some exciting
things together in the future. 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.”

The investment follows the August 2006 alliance that made
Microsoft the exclusive provider of standard banner advertising on Facebook. In
early 2007, the terms were extended to 2011.

—By CONTACT
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