In a quickly thrown together press conference, Google CEO Eric Schmidt and Facebook founder Mark Zuckerberg announced that the search engine giant will be acquiring Facebook for $25 billion in cash and stock giving Google a 98.4% stake in the company. Microsoft will retain a 1.6% ownership share thanks to a $240 million investment in October 2007 giving it a valuation of $15 billion at that time.

Now Facebook will be open to OpenSocial and Facebook apps will be used on Google’s Android mobile platform. Now know as GoogleFace, Google’s Facebook will still be run by Mark Zuckerberg after the FCC and Department of Justice approve the deal.

Schmidt said that one of the key reasons Google bought Facebook was due to the many of its key employees defecting to Facebook over the past couple of months. “So now they’re back where they all belong”, said Schmidt. We wonder now if this deal had been in the works for a while now. Did all those Google employees heading to Facebook know about the deal? We think so.

April Fools! via InfoWorld