It's Official: Microsoft Wins Facebook's Bakeoff

Steve Ballmer and Bill Gates are investing $240 million in Facebook in return for a 1.6% stake. And Mark Zuckerberg and his backers get the $15 billion valuation they’ve been asking for. Microsoft (MSFT) also renews its existing advertising deal to sell third-party ads on the social network, and gets to sell them internationally as well. Release

Update: Forbes reports that Facebook raised another $500 Million from two NYC-based hedge funds during same round.

Followup: Microsoft Facebook Call: Live Update

Related: Facebook Going To…Microsoft?

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