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MSFT pays $240 million for 1.6% of Facebook. - Adventures in Engineering — LiveJournal
The wanderings of a modern ronin.

Ben Cantrick
  Date: 2007-10-24 15:54
  Subject:   MSFT pays $240 million for 1.6% of Facebook.
Public
  Mood:madness ahoy!
  Music:Mindless Self Indugence - Boomin'
  Tags:  slashdot

The two companies said on Wednesday that Microsoft would invest $240 million for a 1.6 percent stake in Facebook. The investment values the three-year-old Facebook, which will bring in about $150 million in revenue this year, at $15 billion.

http://www.nytimes.com/2007/10/25/technology/24cnd-facebook.html?ex=1350964800&en=09f9b04f1e13a145&ei=5124&partner=permalink&exprod=permalink


Well, there's the "WTF were they thinking??" .com boom 2.0 insane valuation investment that I've been waiting for. That makes it official. Welcome to boom 2.0.
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Triggur
  User: triggur
  Date: 2007-10-24 22:16 (UTC)
  Subject:   (no subject)
I don't really get it.

I got a facebook account for testing for a customer project. I can't see anything appealing about the service itself.

90% of the user interface seems to be about customizing the user interface. The other 10% is for spurring the advances of strangers and spammers who want to hook up. It seems wholly pointless.

So I stand similarly shocked and horrified that this POS is worth a dime.
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Ben Cantrick
  User: mackys
  Date: 2007-10-24 22:40 (UTC)
  Subject:   (no subject)
I can't see anything appealing about the service itself.

What's that? Am I hearing someone shout "hey you kids, get off my lawn!"? ;]

If Britney Spears (or pop music in general) teaches us anything, it's that "popularity != quality". Microsoft didn't invest in Facebook because it's "high quality"...

(Not that I'm trying to imply quality is something M$ seems to care much about much in general.)
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Ben Cantrick
  User: mackys
  Date: 2007-10-24 22:47 (UTC)
  Subject:   In fewer words...
Facebook is a dumb little website that college students use to try and get laid. I have no problem with that.

But is a 2% stake in it worth $250 million? Oh, bloody hell no.

Microsoft is letting its ego get in the way of good business sense. (Shocking, I know.) They're only throwing down that money because A) money doesn't matter to them and B) they want to deny Google a fun toy. It's a dick-waving contest between them, pure and simple. The only thing that makes it noteworthy is the insanely inflated amount of money involved - which proves that we're well into boom 2.0.
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