If we are to go by the New York Post, Google is all set to beat Microsoft in the Facebook investment deal. Apparently, both of the giants Microsoft and Google have been vouching for 5 and 10% stake in the social networking phenomenon Facebook.
Like I said, the deal is expected to be announced anytime in the next 24 to 48 hours according to sources. Google has been using his expertise and financial power to negotiate the deal and keep Microsoft out of hunt. Google had edget Microsoft in AOL deal in the past. Like last time, it is the same man — Tim Armstrong — who is assisting Google in its talks with Facebook.
Despite his presence Microsoft seems to be in the hunt this time. According to Redmond based sources Microsoft is willing to go for any possible valuation for the deal.
If we are to go buy the terms of Facebook’s investors, Google or Microsoft would have to provide around $1.5 billion for a stake of either 10 percent of 5 percent. Although both the organization can easily afford the buyout money it is expected that they’re planning to rope in external source for funding.
The key reason is huge amounts of potential advertising revenue available at stake. At present Facebook is discovering new ways to monetize their traffic and is planning to comeout with an official online advertising announcement in the next few weeks.