Microsoft Beats Out Google for Facebook Deal

Company will handle international ad sales, invest $240 million

By Sam Gale Rosen, Newser Staff

Posted Oct 24, 2007 5:00 PM CDT

(Newser) – Microsoft has beaten out Google for the hand of fair Facebook. The much-anticipated decision was announced today: Microsoft will handle Facebook's international ad sales (it already handles US sales) and invest $240 million for a 1.6% stake in the networking site. "We are pleased to take our Microsoft partnership to the next level," says Facebook's chief revenue officer.

"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," says a Microsoft exec. Google declined to comment on any aspect of its negotiations with Facebook.

Facebook founder Mark Zuckerberg smiles during a talk at Web 2.0 conference in San Francisco, Wednesday, Oct. 17, 2007. (AP Photo/Paul Sakuma) (Associated Press)

Microsoft CEO Steve Ballmer gestures as he talks at the Web 2.0 Summit in San Francisco, Thursday, Oct. 18. (AP Photo/Paul Sakuma) (Associated Press)

Facebook.com founder Mark Zuckerberg smiles at Facebook headquarters in Palo Alto, Calif., in this Feb. 5, 2007, file photo. Facebook Inc. has avoided the acquisition frenzy that's gobbled up MySpace.com,... (Associated Press)

Microsoft CEO Steve Ballmer raises his arm as he talks about companies who want to talk to Microsoft, at the Web 2.0 Summit in San Francisco, Thursday, Oct. 18, 2007. During an animated discussion at... (Associated Press)

Microsoft CEO Steve Ballmer laughs as he talks at the Web 2.0 Summit in San Francisco, Thursday, Oct. 18, 2007. During an animated discussion at the summit, Ballmer took a paternalistic tone, comparing... (Associated Press)

Steve Ballmer, CEO Microsoft, speaks about the "Next Generation Internet" during a presentation in Zurich, Switzerland, Thursday, Oct. 4, 2007. (AP Photo/KEYSTONE/Walter Bieri) (Associated Press)

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Microsoft Beats Out Google for Facebook Deal

Company will handle international ad sales, invest $240 million

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Company's partner choice will be either Microsoft or Google

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Company will handle international ad sales, invest $240 million

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OTHER STORIES ON OUR RADAR

Google • Microsoft • online advertising • Facebook

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Google Looking to Buy Yahoo

Google wants more users for Google+, more advertising markets

Advertisers Lukewarm on Social Sites

Networking, video-sharing users not prime marketing targets

Facebook Closes in on Combo Ad, Investment Deal

Company's partner choice will be either Microsoft or Google

Devices Spy on You 24 Hours a Day

Personal data sells for billions of dollars

Google Sets Record: 1B Unique Visitors in Month

But Facebook leads in time spent by users each month

About Us

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Newser By Users

Community

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More News

What is Newser?