Microsoft To Cash In Barely If Facebook Sells

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Microsoft To Cash In (Barely) If Facebook Sells

By: Nathan Weinberg
2006-10-03

Microsoft stands to get a small bundle of cash if Facebook finds a buyer, since it would likely cost them their recent ad deal with...

... the social networking service.

Microsoft dealed for Facebook's ads back in August (a reportedly short negotiation), and if someone buys Facebook, Microsoft gets a few million as compensation, a little less than $10 million, according to the New York Post.

Facebook, the hot social-networking site eyed by a number of media companies, agreed to pay a breakup fee to ad partner Microsoft if it should wind up in the arms of Yahoo! or another buyer, sources told The Post.

The agreement calls for Facebook to pay up - one source pegged the amount at less than $10 million - if it is sold to a Microsoft rival. Neither company would disclose the financial terms.

Not great compensation, given that Facebook is (in theory) worth something, but at least they don't go home empty-handed.

(via Mashable)

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About the Author:
Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines.

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