Thursday, November 8, 2007

Fighting for what ??? Facebook ?


Recently, it looks like Microsoft has beat out Google in the bidding war over a stake in Facebook ! But what does the deal mean? Obviously, Microsoft will sell advertisements that show up on Facebook outside of the US. The two companies will share the revenue from those ads. Microsoft is already selling ad space for Facebook in the US.

According to me the incredible thing about Facebook is that this site is really recent, it has been launched on february 4, 2004 and it's already a really successfull business model !
For having an internship period in press relations for Microsoft, I can say that the most important problem with Microsoft actually is that they are in competition with Google for not beeing on the web early enough.

Moreover, the bottom line is that Microsoft needs to take some drastic action if they want to get a piece of both the internet advertising and search industries. The best method for them to do this is through acquiring Facebook. In addition to having the potential for gaining ground in internet search and advertising, there is also the prospect of rapid growth of Facebook itself. Microsoft has the cash to make something happen.

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