Microsoft Finally Wins a Battle with Google

There is no secret to the fact that Google has been putting the boots to Microsoft over the past 3-4 years. Everything that Microsoft has tried to do, Google has done better. Every major deal that the two companies have been trying to ink, Google has inked it faster. Every hot young company that the two companies have been trying to do business with, Google has been able to outbid the competition.

But not this time.

Microsoft finally beat Google to a deal, inking a deal with the amazingly popular Facebook. The deal values Facebook at a staggering $15 billion dollars. Microsoft will buy a 1.6% stake in the company for $240 million dollars, and they have also agreed to sell ads for the company.

Everyone today has been talking about the fact that Facebook is so incredibly overvalued after this deal. I'm not so sure about that. Facebook is just getting started, and I could easily see the company morphing into one of the biggest full-fledged media companies in the world. Facebook has a massive audience that only grows by the day. I have a feeling that in 3-4 years, $15 billion dollars will only be a sliver of what Facebook is actually worth.

Kudos to Microsoft for finally outbidding Google and beating them to the punch. Google is a great company that has personally made my partner and I a LOT of money over the years, but it is nice to have some competition. Microsoft is becoming relevant again, and that's a good thing.

Filed under: Internet Companies