As the battle between Google, Microsoft and Yahoo continues for online dominance, Microsoft delivered a blow to its competitors recently announcing a $240 Million investment in social networking giant Facebook in exchange for 1.6% ownership in the company. The deal which was publicly announced this past Wednesday, puts a staggering $15 Billion value on the three year old website which is on track to generate $150 Million in revenues this year.

As a part of the deal, Microsoft has negotiated to be the exclusive server of banner advertising on Facebook on a split revenue basis (their former advertising deal with facebook was good until 2011). The deal ends what was surely a vicious battle over the past two months between Microsoft, Google and Yahoo who all were in talks with Facebook trying to secure the deal.

Representatives from Facebook say they plan to use the capital to expand overseas operations, increase their employee infastructure and develop a complex advertising system designed to serve ads on profiles based on personal interests, which is scheduled to be released sometime next month.

Since its inception three years ago, Facebook has experienced unparalleled success due to its functionailty and practicality in the social networking space. Founder Mark Zuckerberg, now 23 currently holds a 20% stake in the company which with Microsofts recent investment values his share at $3 Billion. Stay tuned for more news on the emerging Facebook ad platform.