So, Microsoft paid $240 million for a 1.6% stake in Facebook. Seriously. Lets look at those numbers again: $240M / 1.6% = $15 billion
That's right, folks. Facebook is now "worth" $15 billion. What am I missing here? Are we looking at another Skype debacle? The only material revenue stream Facebook currently has is related to advertising. There is no doubt that the potential is large but $15 billion is probably over the top.
So, who really won in the Microsoft vs. Google battle for Facebook? My money is on Google. Keep an eye out for Google's upcoming API announcements in November and a related push on their Orkut service.