Microsoft Corporation (NDAQ:MSFT) reportedly beat out Google (NDAQ:GOOG) in securing a minority stake in social networking giant Facebook. The software maker agreed to invest $240 million for a minority stake that values the site at $15 billion. The two companies also expanded their existing advertising agreement.

The agreement comes after substantial lobbying by both Microsoft and Google for a prized stake in the very closely held Facebook. The company will use Microsoft's existing advertising platforms in order to handle deals in new markets as well as the U.S. market. The software maker recently scaled up its technology investment and owns several new technologies aimed at brokering advertising over the web.

There is some concern that the valuation of Facebook is far to great to justify; however, it is important to remember that Microsoft is only buying a stake - not the whole company. Microsoft may be willing to overpay for a variety of reasons - chiefly, the commercial implications of a relationship with the social networking giant. Others believe that Facebook may go the way of Friendster who went bust due to difficulties monetizing its audience.

In the end, this is good news for Microsoft shareholders as it is a deal with one of the fastest growing and largest social networks in the world. This makes MSFT a stock worth watching!

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