Those who thought that the times of the “tulip trades” in the IT / Web industries are over could today learn an even new record in company valuation.
Microsoft bought a 1.6 percent stake in Facebook for USD240 million. This would value the three-year-old company at about USD 15 billion. While Facebook is expecting annual revenues of about $150 million this year, most likely the very high price is also related to a competition between rivals Google and Microsoft to buy a stake in the company.
The New York Times reports:
“… The astronomical valuation for Facebook is evidence that Microsoft executives believed they could not afford to lose out on the deal. Google appears to be building a dominant position in the race to serve advertisements online. Fearing it might lose control over the next generation of computer users, Microsoft has been trying to match and in some cases block Google’s plans, even if that effort is costly.
“We are now stepping outside what is typically a business decision,” said Rob Enderle, the founder of the strategy concern Enderle Group. “This was almost personal. I wouldn’t want to be the executive that’s on the losing side at either firm…”
RIM today also announced that they will provide a client application on their popular Blackberry PIMs that will allow native access to the Facebook social network services.
The deal puts the 20% share of Mark Zuckerberg, the 23-year-young Facebook founder who dropped out of Harvard to focus on Facebook, at USD3 billion. Hope he does not believe now that “…it never rains in Southern California…“
- Web: 100 million web sites milestone reached
- Web Browsers: Firefox 2.0 release date 24-October-2006
- Microsoft releases Windows Defender
- Microsoft / Novell: Are Windows and Linux becoming buddies?
Internet monitoring company Netcraft today reported that there are now more than 100 million web sites on the Internet. This is an increase of about 3.5 million sites since last month and the Internet continues its strong growth seen throughout 2006. Blogs and small business web sites have driven the explosive growth this year together [...]
After Microsoft having released his new Internet Explorer 7 web browser with some hickups this week, the Mozilla Foundation today announced that it will make the version 2 of its popular Firefox browser available for download on next Tuesday 24-October-2006. PC World has created a review of the IE7 and Firefox 2 comparing the new [...]
After beta testing the software since January 2005 today Microsoft has released its first version of Windows Defender. The free application is intended to protect MS Windows users from …pop-ups, slow performance, and security threats caused by spyware and other unwanted software… Windows Defender might raise the stakes for security vendors like Symantec and McAfee [...]
Yesterday the two CEOs of Microsoft and Novell in a joint press conference told the public that they have agreed on a set of broad business and technical collaborations …to build, market and support a series of new solutions to make Novell and Microsoft(R) products work better together… The two companies also agreed to provide [...]