Microsoft has successfully completed a deal with social networking website Facebook, valuing the firm at $15 billion.The software and internet firm paid $240 million to gain a 1.6 per cent stake in the company, now just over three years old.
In sealing the agreement, Microsoft overcame competition from rival Google, which was also interested in a potential deal.
"This was a muscle-in from Microsoft," commented Gartner analyst Allen Weiner, adding: "It would have been a nice-to-have for Google, but it was certainly not essential," the Associated Press reports.
Under the terms of the agreement, Microsoft has also won the rights to sell adverts on Facebook websites outside of the US.
During a conference call, Kevin Johnson, president of Microsoft's platforms and services division, stated: "This is a strong statement of confidence in this partnership and in Facebook."
According to Reuters, Mr Johnson added that the heavy price tag paid by Microsoft for a stake in the internet socialising company is reflective of its belief that the site could reach up to 300 million users eventually - 250 million more than it does today.
He said: "You combine the number of users with the monetisation opportunities and you can figure out a fairly modest average revenue per user per year and you can very quickly get to this level of valuation."
Facebook was founded in 2004 by Mark Zuckerberg and currently claims to attract 250,000 new users each day.
