Facebook opens gates of oppurtunity for Microsoft

In a move that is set to forever change the world of social networking, software and Internet powerhouse Microsoft has bought a 1.6 percent stake in the rapidly-rising Internet phenomenon, Facebook.The deal, announced just ten minutes ago, said to have depleted Microsoft’s bank balance by a ‘mesely’ $US240 million ($AUD265 million) was one of a few offers made to the ‘book, with Internet search giant Google also having made an offer.

Founded in 2004, the ’social utility’ affectionately known to just about everyone you know as Facebook, run from Palo Alto in the United States was valued at no less than $US15 billion ($AUD 16.36 billion), and whilst only trading for a relatively short-lived four years employs 300 staff. One would think Bill Gates, chairman of Microsoft would be over the moon today. His bid to win a stake in other successful Web 2.0 endeavours such as Internet ad service DoubleClick Inc. and YouTube were battles lost to Google Inc. By sealing the deal, Microsoft could finally say they have a stake in Web 2.0; because if the past is anything to go by, previous Web 2.0 endeavours by the Redmond-based company such as Spaces and the Zune Marketplace have experienced fairly insignificant take-off speeds.

Its not rocket science to see that Microsoft has a lot to win with the Facebook deal. According to Wikipedia, during its fiscal year ending in June, Microsoft’s online ad revenue rose just 21 percent to $1.84 billion compared to Google’s ad revenue soaring 64 percent to $13.3 billion - Clearly meaning owning a stake in Facebook is a big deal for ‘William’ and his mates.

If nothing else, at least finally the big fish have realised the importance that Web 2.0 plays in today’s information-packed world. Will this lead to Google giving up on their own social network - Orkut? I guess it’ll all be revealed sooner rather than later.

How much do you think this will change what we know and love about Facebook?Was it worthwhile for Facebook as much as it obviously was for Microsoft? Let us know your views.