Microsoft Beats Google

(It felt so unnatural to write that title.) Microsoft will buy a 1.6 percent cut of the Facebook pie for $240 million. Along with the deal, Microsoft has agreed to sell ads for Facebook overseas. Microsoft already has a deal with Facebook to sell banner ads in the US until 2011. Microsoft needed this win. Google does have a deal with MySpace, but Facebook’s user growth rate is outpacing MySpace’s at a 6:1 ratio. That obviously is a huge gap, but keep in mind that Google is besting Microsoft in internet revenue at 7:1 ratio.

I was hoping to get a quote from Google but my calls to founders Larry Page and Sergey Brin have not been returned.

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