Microsoft Buys 1.6% of Facebook For ????

I am sure that I am not the only one in this world appalled by the news coming out from Redmond the the past few days. Facebook sold a part of itself to Microsoft for $240 million dollars, giving up the rights for exclusive ad management to Microsoft.

Normally I wouldn't have a big problem with this type of transaction, except for the fact that it puts Facebook's value to $15 billion dollars. Talk about over evaluating the company that doesn't even make a billion worth of revenue a year. How do I know? I really do not, but judging from other social networking sites, who release their revenue figures, I can as well take an educated guess and say that Facebook does not generate a billion dollars worth of revenue, never mind 15 of them.

Also, take into account the fact that in the near future there will come a time where some other social networking site will spring up and effectivelly kill facebook, just like it did myspace, friendster and others. And then all of those investing in it will be left penniless and I will be laughing.