The New York Times has posted an article which demonstrates they understand the true value of Facebook. Facebook represents in some small way, the beginning of the Semantic Web. Microsoft has paid 240 million for a 1.6 stake in Facebook which would value Facebook at 15 Billion.

As part of the deal, Microsoft will sell the banner ads appearing on Facebook outside of the United States, splitting the revenue with it. Last year, Microsoft struck a deal with Facebook to run banner ads on the site in the United States through 2011.

Facebook is popular to different people for different reasons.

1. Technologists, understand the ramifications that social networking has to advertising, and data mining and the advancement of an Internet which is connected in a way which is compelling and more easy to navigate.
2. Our Youth: Loves Facebook, it's their new playground with new free toys popping up all the time
3. Our Parents: The baby boomers can't wait for the IPO. But I'm worried about current revenue verses current valuation.
4. Companies: This represent an almost paradigm shift in the way corporate America can reach out to America, but in order to be successful, these companies have to realize that the citizens are smart and it will take a new novel, non-traditional approach to touch these people.

This sends a clear message to everyone. Microsoft is serious about advertising, and Mark Zuckerberg the 23 year old guy from Harvard is ready to take on the world. As for the IPO, this cash and likely engineering help will be critical to match the pure brain power that Google will now focus more clearly in order to squash this threat. Microsoft will try to keep blocking Google moves. This is great for us consumers, especially because Facebook will still be able to innovate without major interference from the larger Microsoft. One thing is clear to me though, Mark Zuckerberg is a hungry man.