Industry insiders have been waiting for it to happen, and on Wednesday, it finally did. Microsoft beat Google to the chase and announced it's investing $240 million for a 1.6 percent stake in social networking site Facebook. That put the value of the site at $15 billion. In the deal, Microsoft also won exclusive rights to sell third-party banner ads on Facebook. Downplaying analysts' descriptions of Facebook as a trend and not a long-lasting site, Kevin John, president of Microsoft's platforms and services division, said the user base should eventually reach 300 million members.

This year, the hot social network is expecting a profit of $30 million on $150 million in revenue.