Facebook Seeks Hedge Fund Cash After Microsoft Deal

Social networking site now valued at $15B
By Peter Fearon,  Newser Staff
Posted Oct 26, 2007 1:12 AM CDT
Facebook Seeks Hedge Fund Cash After Microsoft Deal
Facebook.com's mastermind, Mark Zuckerberg smiles at his office in Palo Alto, Calif. in this Feb. 5, 2007 file photo. Rapidly rising Internet star Facebook Inc. has sold a 1.6 percent stake to Microsoft Corp. for $240 million, spurning a competing offer from online search leader Google Inc. The deal...   (Associated Press)

After raising $240 million from Microsoft, the social networking site Facebook expects to raise a further $260 million from hedge funds and private-equity investors, according to the Wall Street Journal. The cash will be used to fund an international expansion and a new ad revenue system. The investment would put the value of Facebook at $15 billion.

Microsoft becomes the exclusive broker of display ads on international versions of Facebook.  Meanwhile, Facebook is developing a system of its own that will target individual users based on personal information. "We have a good working relationship and are excited about the future," a Microsoft spokesman said.  "We'll both continue to evolve ad products." (More Microsoft stories.)

Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X