Microsoft has announced they will take a $240 million equity stake in Facebook's next round of financing at a $15 billion valuation, and the companies will expand their existing advertising partnership.
Under the expanded strategic alliance, Microsoft will be the exclusive third-party advertising platform partner for Facebook, and will begin to sell advertising for Facebook internationally in addition to the United States.
Making this investment and expanding this partnership will position Microsoft and Facebook to better take advantage of advertising opportunities around the world.
The opportunity to further collaborate as advertising partners is a big reason they have decided to take an equity stake.
Facebook continues to experience strong growth both in the U.S. and international markets; 59 percent of Facebook's users are outside the U.S. With an average of 250,000 new users registering each day, Facebook continues to be one of the most-trafficked sites on the Internet.
On Aug. 22, 2006, the companies announced a U.S.-only strategic alliance that named Microsoft the exclusive provider of standard banner advertising on Facebook using Microsoft's digital advertising solutions and the Microsoft(R) adCenter platform. In early 2007, the terms were extended to 2011.
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