Microsoft buys 1.6% of Facebook for USD 240m

Microsoft beat Google in securing a minuscule chunk of Facebook - 1.6 per cent - for USD 240 million, a couple of weeks or so after Steve Ballmer, Microsoft's CEO, dismissed Facebook as a fad.

The social network, launched by Mark Zuckerberg, is now worth USD 15 bn, 25 times more than the USD 580 m price Media Mogul, Rupert Murdoch paid for Myspace.com, Facebook's archrival back in July 2005, in now what to look like the bargain of the century.

Facebook is expected to break even this year with revenues of USD 150 m although the massive price paid has sparked concerned that another Internet Bubble is on its way.

In other news, Forbes Journalist, Daniel Lyons, writes that Facebook got more cash injections from two New York hedge funds, worth USD 500 m.

Microsoft's investment will be used amongst other things to boost the head count at Facebook to 700.

The Redmond Company has invested in competitors like Corel and Apple in the past and feels comfortable in a collaboration/competition scenario.