American company Microsoft will be selling Internet advertising for Facebook outside the US as part of the deal that took several weeks to sort out.
Mark Zuckerberg, 23, created Facebook in his Harvard University room less than four years ago and has watched it grow and grow, and he also rejected a $1bn takeover offer from Yahoo just last year.
Facebook allows users to set up personal web pages and to send messages in a similar way to Myspace.
Facebook is expecting to make a profit of $30m this year, according to reports.
