As reported in Management Today Microsoft buys a small stake in Facebook for $245m or so. This values Facebook at $15 billion. So what do they see to get to that valuation? They don't. Consider this a 'licence' fee to allow MS access to a huge database for its ad deleivery programmes. This is another way to compete in the online ad market against Google. What do MS get?

• They get access to a company with 50m very active users
• They get access to a social media community that is prepared to divulge freely profiling data normally hard to get
• They get access to a communication platform that can have profile sensative ads delivered
• They get to learn about the whole area of social media

Social media a fad? Maybe but that is exactly what they said about mobile phones and PCs. Overvalued? Maybe? But how many billions do advertisers pump into traditional media in the hope someone is listening?

Smart move.