Facebook / Google: Joke is on Microsoft

While they’re popping the champagne up in Redmond, let us keep in mind that the Facebook “win” was not an outright acquisition like aQuantive.  It was not a control position.  It was not a major investment that might someday yield a humongous return (could be 5x-10x, if all goes fabulously, but even that’s couch change for Microsoft).  It was not a minor 5% investment that might at least include a board seat.  It was not a deal that appears to include much in the way of fringe benefits other than the right to sell international remnant advertising that Facebook doesn’t want to sell–and for only three years, etc.  Instead… it was:

A month of desperate work to be allowed to invest $240 million (chump change) for a crumb of equity (1.6%) and a sales-repping job in a  company that now appears to be obligated only to treat Microsoft like any tiny minority investor (i.e., send them some financial info once a quarter).  The good news: At least Google didn’t win again.

Hearty SAI congratulations to the real winner here–Mark Zuckerberg!

See Also:
Microsoft-Facebook Content-Free Conference Call–Notes
Sorry, Microsoft, Google Has Already Won the Facebook Bidding War
Microsoft “Wins” Facebook Bakeoff.

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