Thursday, December 18, 2014
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Your Next Car Could Have Android Inside
North Korea Linked To Recent Sony Hacking
Sony Global Education Established
CEA and Japan Audio Society to Jointly Promote Hi-Res Audio
Intel, IBM Follow Different Strategies On 14nm FinFET
Toshiba Announces 6TB Enterprise Capacity HDD Models
WebOS 2.0 Smart TV Platfom To Debut At CES
ICANN Targeted in Phishing Attack
Active Discussions
Windows xp
Will there be any trade in scheme for the coming PSP Go?
Hello, Glad to be Aboard!!!
Best optical drive for ripping CD's? My LG 4163B is mediocre.
Hi All!
cdrw trouble
CDR for car Sat Nav
DVD/DL for Optiarc 7191S at 8X
 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
Tech Giants Support Microsoft In Data Fight With U.S.
Cortana Arrives in France, Italy, Germany, and Spain
Microsoft Creates Tools That Unlock the Power of Living Cells
Microsoft Acquires Mobile Email App Provider Acompli
Microsoft Accidentally Anounced Acquisition Of Acompli
Microsoft Offers Massive Music Deals For The Holidays
Microsoft Slashes Prices Of Xbox One, Surface 3 For Black Friday
Samsung Loses Bid Against Microsoft
Microsoft To Offer Digital Services To Real Madrid Soccer Fans
Microsoft Surface Pro 3 Update Fixes Bugs
Microsoft's 3D Soundscape Technology Research Helps Visually Impaired
Microsoft Buys Cloud-security Company Aorato

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 .