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Rumors have been circling all week about a fight between Google and Microsoft over a minority stake in Facebook to essentially provide the advertising model for Facebook.

Well, Microsoft won with a $240 million dolloar minority equity stake in Facebook. Bigger than that is the price provides a tangible valuation for Facebook - which is (drum roll…) $15 billion. Wow.

Ridiculous? Yes. Dangerous? Yes. Why? It’s not worth that much - look at Skype. Sure, different model but same valuation techniques.

So what does Microsoft get out of the deal aside from the minority equity stake? Oh just the exclusive third-party advertising platform for Facebook (sorry Google). Pretty good deal to get in front of 47million users.

Reuters - Microsoft pays $240 million for Facebook stake

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