Microsoft has won a high-profile technology industry battle with Google and Yahoo to invest in the social networking upstart Facebook.
The two companies said on Wednesday that Microsoft would invest $240 million for a 1.6 percent stake in Facebook. The investment values the three-year-old Facebook, which will bring in about $150 million in revenue this year, at $15 billion.
As part of the deal, Microsoft will sell the banner ads appearing on Facebook outside of the United States, splitting the revenue with it. Last year, Microsoft struck a deal with Facebook to run banner ads on the site in the United States through 2011.
“MySpace is not based on authentic identities. Facebook is based on who you really are and who your friends really are. That is who marketers really want to reach, not the fantasy you that lives on MySpace and uses a photo of a model,” he said.