Software giant Microsoft has joined the social networking revolution by purchasing a small stake in the popular Facebook site.

After months of rumours, Microsoft has beaten a late bid by search engine firm Google to buy a 1.6 per cent stake in the Facebook company for $240 million (£117 million).

The deal, which will see Microsoft sell internet advertising for Facebook outside of the US, values Facebook at $15 billion just over three years after being founded. Last year, the two firms announced a US-only deal which made Microsoft the only provider of broadband banner advertising on Facebook.

Owen Van Natta, chief revenue officer for Facebook, said: "We are pleased to take our Microsoft partnership to the next level. This relationship will allow Facebook to continue to innovate and grow as a technology company, as well as bring relevant advertising to Facebook's nearly 50 million active users."

Facebook was launched in 2004 by Mark Zuckerberg, who is now 23 years old.

Categories: Broadband Products

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