One of the most successful social network sites on the planet (5th Largest I beleive) sold a slice of itself to Microsoft for $240,000,000. Earlier CEO, 23 yr old Mark Zukerberg spurned a take over bid by Yahoo for $1,000,000,000. That is 1 cool billion. With Microsoft coming to the plate for a 1.6% share at 240 million, it allows for Facebook to complete it's ambitious expansion plans and maintain ownership. Facebook CEO Zukenberg will consider a public offering in a couple years, no doubt believing that the company will be worth no less than 10 times what Yahoo tried to snag it for.

The Facebook site with it's 47 million users has really been sort of an experiment  in that it no longer limits it's attraction to college kids but opened itself up to anyone that was interested. There is currently no commonality in the specific traits of its users and it allows anyone to jump in, in a sort of free for all, at least as far as not directing it to one group or another.

Facebook will likely experience some real growing pains and to be sure aligning itself with Microsoft will provide needed liquidity and actually is a stroke of genius. Not that the site itself wasn't.

To get specific here, Microsoft bought a 1.6 % stake in Facebook and Google who was in the hunt as well, must not have seen the same value as Microsoft who needs to increase it online advertising. Microsoft will sell ads that will appear when Facebook users (over  47 million users to be exact ) use the Windows On Line service, Microsoft  Smart Phones and even the X-box online gaming site.

Microsoft in seeking to increase that ad revenue with its new base on Facebook, currently reporting about 1.8 billion a year in on-line ad revenue. Google by contrast is in the range of 13.3 Billion in ad funds revenue. But with its $240 million investment, it's like just seed money for the if and when, they may be able to get a bigger share. Microsoft probably feels pretty good in beating out Google, the clear online revenue generating machine title holder.

Don't we all just love Capitalism!

 

28 Comments on Microsoft Buys a Piece of Facebook and a Little Piece at That for $240,000,000

I'm first...be back.

Okay, so if you and I buy some stocks in Facebook we'll be rich?  I wonder if those guys even have to work any more.

10/27/2007 11:16 PM by Celeste "SALLY" Cheeseman (RA), e-PRO HAWAII Real Estate & HAWAII Relocation (Century 21 Liberty Homes -Mililani, Hawaii)


Woo Hoo, Do what you love, remember! You wrote the post.  These kids are having a ball and they know more about technology than I could even dream about. Darn them. I wish I had thought of Facebook. The closest I came was facepaint, and it too was already thought of. Too late again,lol What's that exprtession," Too Little, Too late" !

10/27/2007 11:23 PM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


Hi Courtney, it is cool. I sure wish it had been me, don't you? Wish it had been me, that is, lol. Then you would and I both would know someone rich,hehehe.

10/27/2007 11:24 PM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


Hey guys, the big bucks are great, but in reality your life wouldn't be any different if you had $24 million instead of $240 million!!  Even if you only had 2.4 million you could retire if you planned it right....How many homes can you live in, how many cars can you drive, how much traveling can you do?  How much food can you eat?  But Im very happy for Zukenberg, if he can do something that he loves and succeeds, then all of us can!  right on

10/27/2007 11:33 PM by Prudential California Realty/Bristol Home Loans


William: You are too funny!  Hey, if we ever get to meet...we can play paint ball...on second thought I think those things may hurt...okay, finger paint...I did some of that in grade school.  In any case, there is one thing that I know we have in common....taking care of our "babies". Now, that beats all of this in my book.

10/27/2007 11:46 PM by Celeste "SALLY" Cheeseman (RA), e-PRO HAWAII Real Estate & HAWAII Relocation (Century 21 Liberty Homes -Mililani, Hawaii)


My wife used it in college - no idea it was that popular, or pricey. Thanks for sharing.

Dan

10/27/2007 11:51 PM by Daniel Smith (Allied Home Mortgage)


Hi Daniel,Thank you and hope it was interesting. Whenever I am talking about the big boys and the big bucks, I always want to be very positive. Hope you can use this in your conversation sometime, though it might be used as a last resort if you want to leave a party early,:-) Thanks for the nice comments. Join back up, I am going to. It sounds like a fun place to visit now and then.

10/28/2007 12:14 AM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


Hi Kirk, I am right there with you. 2.4 would be nice, although for me a little confusing. That isn't really rich and God knows I have expensive taste. Better the 24Million and then I would be sure it last till I croak. The house I have in mind would take half, need half of the half for design and maintenance( taxes too) and the other 6 Million I would use to travel and buy my Rolls. One here , One in England, One in Hong Kong and the other in Manhattan. Yep, I might make it on that, I would need to invest it a couple years just in case I stast to buy to many things, which would mean giving some stuff away of course and If I get the money, I think I will give it you. How's that for fair? Thanks so much for stimulating my brain and getting me to realize that 2.4 is NOT ENOUGH!

10/28/2007 12:24 AM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


Sally, I will take some pictures of the two babies tomorrow . I had them groomed yesterday and thye are so cute looking. Did oyu read my comments about you to The young lady you spoke to me about. They are on the funny side.

10/28/2007 12:27 AM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


I had no idea that the CEO is just  23 years old   . Interesting post.

10/28/2007 06:24 AM by GITA BANTWAL, REALTOR BUCKS COUNTY, PA HOMES (ReMax Centre Realtors)


I am still learning about facebook -and he is 23 oh my - I have a daughter that age - single - ummm wonder - nah lol

10/28/2007 11:43 AM by Central Oregon Real Estate | Thesa Chambers, Broker (RE/MAX Sunset Realty La Pine)


Hi Gita, Thanks for your comments. Always appreciate when people take the time to leave a comment.

10/28/2007 12:17 PM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


Hello Thesa, Hey why not, at least if they hit it ff, she would never have top work again. Wouldn't that be a fun thing. We all have passions about our work. But I am convinced that I would love to be rich and idol,lol

10/28/2007 12:19 PM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


Makes you want to work on building "the next big thing".  What exactly does one do with $1B?

10/28/2007 02:15 PM by Jeff Geoghan MBA - Lancaster PA Real Estate Expert (Coldwell Banker Select Professionals)


Hi Jeff, I can't speak for anyone else but I would bet I could spend the lions share it easily,:-) Would sure love the opportunity to try it anyways.

10/28/2007 02:19 PM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


True - what's the average price for a "nice" house on the cliff at La Jolla?

10/28/2007 02:20 PM by Jeff Geoghan MBA - Lancaster PA Real Estate Expert (Coldwell Banker Select Professionals)


About 4 Mill unless you want something small and you get something for 2 mill Jeff. Shall I get something selected for you to see?

10/28/2007 03:07 PM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


William - Darn it, I was hoping to be the winning bidder.  That darn Bill Gates just gets everything!  I imageing $240 million to Microsoft is just petty cash.

10/28/2007 08:04 PM by Laguna Homes|Laguna Condos| Laguna Real Estate|Marlene Bridges (Sherman Smith & Associates)


Marlene, Doesn't he. Petty Cash, more like pocket change. And by comparison, it would change my life . Although As I discussed with someone else here, 24 million would just about do it. Half would go to the house, and it would have to be my listing, of course. I don't have the exact house as yet in mind but I am sure I would find one that would be just right. I would also add in a nurse for the girls and a real chauffeur to drive all my friends around from party to party.

Taxes will cut into that and I need property tax money. Lets see , we could all go to Paris and buy stuff and them Italy and then to Australia for the sights. Sound like a real plan. Now I have figure out how to get the 24 mill and then off we all go.

10/29/2007 12:17 AM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


Amazing how much a simple, well executed idea is worth.

10/29/2007 12:09 PM by Nancy Moeller (RE/MAX Real Estate Services)


Hi Nancy,

Isn't it though? I think All my best executed ideas added together would probably garner me bus fare, lol. Then again, I do have one that has not been executed as yet and it might be worth a great deal. I have intermittently worked it on a few years and at the time with  current technology, it was not feasible. Those things are rapidly changing and when I think about today, it may even be doable. I was a bit ahead of my time when I thought this idea out but who knows, what another day would bring,:-). I used to speak about it and some have even used the principle of the idea and are making money with a unique business. But they don't have the optimization of the idea and that is where the genius is. So we'll see one day what that looks like. I predict I will find a way to bring the idea to fruition. Sorry for the tease here.

I surely appreciate you dropping by and leaving a comment on this . And your point is so well taken. In a few words you spoke a lifetime of success. Well done!

10/29/2007 03:13 PM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


23 years old!  I have furniture older than that!  Amazing how these kids have latched onto technology.  It's sure changed MY world!

11/02/2007 11:49 AM by Gayle Ross (Century 21 Ross Group)


hey everyone,

 

here's the deal ... listen ... i'm 27 years old

it took bill gates, oprah, donald trump, etc. over 20+ years to acccomplish their success after many, many, many failures and trials to get where they are today.  it was "hard-work".

however...

... TODAY, my generation is doing it in a fraction of that time.

The Google Boys did it ... the YouTube boys did it ... the MySpace peeps did it ...

... the CEO of Facebook started the company less then 3 years ago, folks!!

for example, YouTube was created by young 20-something-year-olds ... less than 3 years ago ...

... it was sold to Google for $1.65 *BILLION* dollars last year.  they became BILLIONAIRES in less than 3 years time!!

 

... but how??   how are we doing it in less time??

--->  SIMPLE ANSWER:  we learned from YOU!

 

for that, i would like to thank every single hard-working individual that still believes "hard-work" it what it takes to become successful in life.

it is because of you that we now have the knowledge to EXPLODE our success (and pocketbooks).  without you we would have never been able to do it.  seriously!

"hard-work" is essential to build character and integrity ... "hard-work" is what it takes to forge a path to the future ... but it is no longer necessary to build wealth.

please understand that my generation is no longer in the INFORMATION WORLD ...

... instead, we have now evolutionized to the ATTENTION WORLD.

the person/company/business that can keep your attention the longest ... wins!

 

(( just think about all those internet leads that are looking for a home to buy ... if you don't respond to them immediately ... you lose! ))

 

thank you for your time, 

=RonReed=

11/06/2007 07:42 PM by Ron Reed (First Weber Group Realtors)


Hello Ron,

I think you said it all and said it well. Congrats on your fast track to success. May your way always be clear and no detours along the way.

All the Best Allways!

Sincerely,

William

11/09/2007 08:29 PM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


Hi Gayle,

Excellent thought. It has and will continue to change all of our worlds. It is just the beginning. How I wished I were 21 again and know what I know now,LOL. I would love to be a part of this new technology revolution. It will continue to change the world we live and work in. How it will end up changing the real estate industry as it is being attached from all sides will begin to unfold in the months and years ahead. Amazing to say the least.

11/09/2007 10:36 PM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


Thank you for the reminder on FaceBook.  I had meant to check it out, but had forgotten. 

11/16/2007 09:03 PM by Bill Exeter (1031 Exchange Expert) (Exeter 1031 Exchange Services, LLC)


Hi William, You are welcome and it certainly makes me wish I had these sorts of talent. I think of a lot of dreams that would realized, :-) Thank you again for adding me as an Associate. I should have put a link in the post so it would be easier to look up. Next time. I just never think of these optimal ways to make my posts better.

11/16/2007 09:21 PM by San Diego Real Estate Voice authored by William Johnson GRI CRS e-PRO (RE/MAX Associates)


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