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Stock Market Likes MSFT/Facebook Deal

This is somewhat meaningless or very meaningful, but MSFT finished up 1.13% for the day, after taking a sharp turn upwards late in the trading day… at which point the Street knew that Facebook had gone with MSFT and not Google.

Then, after the market close, MSFT is up 0.93%… meaning that it could be argued that by getting Facebook’s business, MSFT’s stock went up 2%, or given its $290B market cap, over $5 Billion.

What did that cost them? $240 Million.

Say what you want but in the school of financial engineering, this deal might look like a winner even if the $240M commitment and the $15B valuation seem awfully steep.

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Posted By: Ashkan Karbasfrooshan | Oct 24th

One Response to “Stock Market Likes MSFT/Facebook Deal”

  1. thefamilyguy Says:
    October 24th, 2007 at 6:02 pm

    MSFT’s on it Ash. I strongly believe that GOOG’s gonna nowhere come near MSFT’s valuation, let alone leapfrog it.

    I remain skeptical of the plan GOOG has for GPhone and how much meaningful impact it would have on advertising revenue it snatches. That coupled with their Double-click stuck doesn’t paint a pretty picture.

    I foresee *strong* competition for advertising $ with Yahoo and MSFT eating into GOOG’s lunch two years down the line (and don’t even bother thinking of GOOG eating MSFT’s lunch .. ala Office revs with their stupid Apps).

    Your take?

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