Speculation on Microsoft Investment in Facebook
Posted by Brian Kelly 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?