News is out that Microsoft is investing $240 Million in Facebook for 1.6% in equity, putting a $15B valuation on Facebook. What?! You read correctly. A 1.6% stake for $240M.

Hard to justify by any means, but it reminds me of when the Yankees signed Alex Rodriguez to a 10 year $252M contract. I was among the many Seattle Mariners fans who paid top dollar to see this new Yankee's star play, which in itself probably justified the valuation because the Yankees were selling out just about every game in every town.

A self-fulfilling prophecy perhaps? I would expect Facebook's 50M user community to easily double within the next year as people tune in to see what the commotion is all about.