Thursday, April 17, 2014
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Amazon Announces Kindle Service For Samsung Devices
Nokia Halts Sales Of Lumia 2520 Tablet
TSMC Reports Quarterly Profit
Toshiba Debuts World's Fastest microSD Memory Cards
PlayStation 4 Sales Surpass 7.0 Million Units
Google Reports Lower Than Expected First Quarter revenue
AMD Demonstrates Next-Gen x86 APU Running Fedora Linux
Lenovo Introduces A to Z and FLEX 2 series Of Laptops and Desktops
Active Discussions
help questions structure DVDR
Made video, won't play back easily
Questions durability monitor LCD
Questions fungus CD/DVD Media, Some expert engineer in optical media can help me?
CD, DVD and Blu-ray burning for Android in development
IBM supercharges Power servers with graphics chips
Werner Vogels: four cloud computing trends for 2014
Video editing software.
 Home > News > General Computing > Microso...
Last 7 Days News : SU MO TU WE TH FR SA All News

Thursday, October 25, 2007
Microsoft to Buy Facebook Stake For $240 Million


Microsoft beat out Google on Wednesday in a battle to invest in socializing Web site Facebook, agreeing to pay $240 million for a 1.6 percent stake in the Web phenomenon.

Microsoft also clinched exclusive rights to sell ads on Facebook outside of the United States as part of the investment that valued Facebook at $15 billion -- on par with the market capitalizations of retailer Gap Inc and hotel chain Marriott International Inc.

Analysts said Microsoft paid a steep price on a bet that the three-year-old company would be able to transform itself into a hub for all sorts of Web activity.

"The only way this works is if Facebook becomes sort of the users' operating system on the Internet -- everyone logs into Facebook every day to get in contact with their friends and use a multitude of future applications that will be developed for it," said Morningstar analyst Toan Tran.

Facebook, a social network that lets friends share information, allows outside developers to create games and other applications for its site.

The popularity and depth of knowledge Facebook has about its users makes it valuable to companies like Microsoft and Google which want to sell advertising targeted to individual preferences.

Founded in 2004, Facebook said it registers 250,000 new users a day, 60 percent of whom come from outside the United States.

Kevin Johnson, president of Microsoft's platform and services division, said the $15 billion price tag for Facebook is based on Microsoft's belief that the site could eventually reach 300 million users, who can be targeted for advertising. It has nearly 50 million today.

Microsoft has stepped up efforts to be a player in the $40 billion market for online advertising, which the company expects to double in size within three years. It paid $6 billion to acquire digital advertising firm aQuantive in August.

Under the Facebook deal, Microsoft would be the exclusive third-party advertising platform for Facebook extending a previous deal for Microsoft to sell banner advertising next to Facebook member profiles in the U.S. until 2011.

Microsoft's "rival" Google has alrady a multiyear deal with MySpace , the largest social network, to provide search and advertising alongside MySpace's 110 million user profiles.


Previous
Next
Transmeta Settles Patent Litigation with Intel        All News        NEC Develops TFT LCD Module That Enables Control of Viewing Angle
Microsoft Abandons Remaining EU Court Cases     General Computing News      British and Dutch police Raids Shut Down The World's Largest Pirate Music Site

Get RSS feed Easy Print E-Mail this Message

Related News
China Approves Sale of Nokia's Business to Microsoft
Microsoft Announces New Cloud Tools
Microsoft Previews .NET Native Platform For App Developers
Microsoft Says It Won't Search Users' Emails For Stolen Property
Microsoft and Dell Sign Patent Licensing Deal
Microsoft Opens Source Code for MS-DOS and Word For Windows to Public
Nokia, Microsoft Deal Delayed
Microsoft Searched Hotmail Messages To Track Leak
SQL Server 2014 Coming April 1st
Microsoft Releases 2013 Law Enforcement Requests Report
Microsoft May Be Preparing New DirectX Version
Microsoft Lync Gets New Interoperability With Android, Skype

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2014 - All rights reserved -
Privacy policy - Contact Us .