UK Web Focus

Reflections on the Web and Web 2.0

Archive for September 29th, 2007

Speculation on Microsoft Investment in Facebook

Posted by Brian Kelly (UK Web Focus) on 29 September 2007

A Techcrunch article on Microsoft May Invest in Facebook At $10 Billion Valuation was published on 24 September 2007.

James Brown on the RIN Team blog has provided some interesting thoughtson the reasons why Microsoft are willing to invest $300-$500 million for a 5% stake in the company - which would place a valuation on the company of $10 billion.

I was interested in one of the statistics James provided: Facebook has 42 million active users and, in comparison, Spain has a population of 45 million. Is Facebook really, as some have suggested, really a passing fad. Perhaps Spain is, as well :-) And I wonder if, on 4 April 1975, anyone would have predicted the growth in Microsoft and when it stopped being dismissed as a fad?

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