Facebook is in the advertising business. This Business Week article provides a great deal of useful information about Facebook, its plans, and its business model.
Interesting quote -- "But there is a real imbalance right now: Between something like 28% to 29% of people's time is spent online, but only 8% to 10% of the dollars are spent online. So there is this migration of ad dollars from other places going online."
http://www.businessweek.com/technology/content/apr2009/tc2009048_429871.htm
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