On Oct 24th Microsoft valued Facebook at a remarkable 15 BILLION dollars. By investing 240 million for a measely 1.6% 'strategic interest'.
So what does that mean?
My take: Microsoft is trying to remain relevant against the big G. Microsoft's stock continues to stay flat while Google continues to sky-rocket. Google is making large in-roads with SAAS. Ultimately MS' market-domination will fade as more common tools are to the web and become less OS dependant. So how can they recover? how can they regain the eyeballs of the world? By strategically partnering with the web's current darling - Facebook. There's a huge rash of new development happening in facebook. Startups are being launched with the express intents of creating apps just for facebook. The marketing potential is incredible. The amount of time people are spending on facebook is ridiculous.
So, again - what's this got to do with MS?
Let's say in Jan 08 or at least before their quarterly report MS can launch Office Live as ... a facebook app. Tada!
Facebook is no longer the workplace pariah as employees can be productive and collaborate. The network itself isn't conducive to work but the shift is quite possible. Facebook becomes a defacto web OS.
Sounds pretty win-win to me. Any takers?