Facebook will sell a $ 240 million nonage stake to Microsoft , which as part of the deal will also flesh out the advertizing services it provide to the societal networking phenom , the companies say Wednesday in a statement .
The sizing of the possession bet Microsoft will take during Facebook ’s next troll of financing frame Facebook ’s valuation at a whopping $ 15 billion . Google had reportedly been courting Facebook as well .
In addition to the ownership piece of music , Microsoft will also extend its exist agreement to provide banner ads to Facebook in the U.S. With this deal , Microsoft will become Facebook ’s sole third - party advertizement platform , as well as provide Facebook ads internationally .
Facebook will in all likelihood consecrate the cash influx from its next financing round to bankroll the torrid increment it is expecting in the add up 12 month in usage and headcount .
With about 300 employees now , Facebook expects to have about 700 a year from now , its CEO and Centennial State - founder Mark Zuckerberg pronounce last calendar week at the Web 2.0 top .
Meanwhile , the situation is growing its usage at breakneck speed , with about 250,000 Modern users registering every day .
plant in 2004 , it presently has about 49 million active users today , up from 12 million in December . Over one-half of its dynamic members return to the site daily . Some 59 pct of its user are outside the U.S.
before Wednesday , The Wall Street JournalandThe New York Postreportedthat Facebook was in the net stage of fix a decision on whether to do this deal with Microsoft or Google .
For Microsoft , which has n’t attained as strong a lieu in online ad as it had hoped , and lags behind Google , down this deal could be a major winnings , as long as Facebook establish to be as attractive an advertising vehicle as expected .
TheJournalreportedlater on Wednesday that Facebook have a bun in the oven a profit of about $ 30 million this year , on revenue of $ 150 million .
Google and Yahoo allow advert for Facebook rival MySpace .
Still , questions stay about social networking sites ’ full electric potential for advertising , since most of their content is largely unregulated and created by million of individuals , resulting often in material that is uncouth and exceptionable .
Facebook plans to share more mind for rev up up its advertising business concern on Nov. 6 , at an event in New York to which it has ask in what it calls “ its closest advertiser . ”
“ As part of [ the consequence ] , Facebook executive will discuss novel approaching for advertising online , ” a Facebook spokeswoman said via e - mail . “ We are not divvy up any further detail . ”
Facebook , MySpace and others are also under closemouthed examination from law of nature enforcement bureau in the U.S. and abroad because sexual predator apply social - networking sites to haunt and con people , in particular minors .
TheJournalfirst report Google ’s and Microsoft ’s pursuit of the Facebook investment a calendar month ago .
