Microsoft's US$240m worth of face

Global - Microsoft will pour US$240 million (S$351.14 million) into Facebook, expanding an exclusivity agreement, to provide banner advertising, from the US-only to a global commitment.

Microsoft's equity stake, which values Facebook at US$15 billion (S$21.95 billion), will be cemented at Facebook's next round of financing, allowing it to be the exclusive third-party advertising platform partner for Facebook internationally.

Facebook's vice president of operations and chief revenue officer Owen Van Natta said, "This relationship will allow Facebook to continue to innovate and grow as a technology company, as well as bring relevant advertising to Facebook's nearly 50 million active users."

"This positions Microsoft and Facebook to better take advantage of advertising opportunities globally. It is a great win for not only us both but also our collective users and advertisers. The opportunity to further collaborate as advertising partners is a big reason we have decided to take an equity stake, and is a strong statement of our confidence in the long-term economics of this partnership," Kevin Johnson, Microsoft's president of the platforms and services division said.

Johnson adds Facebook is one of the most-trafficked sites online, and is experiencing strong growth both in US and internationally with almost 60% of users outside the States and about 200,000 new registrations daily.