Microsoft buy into Facebook

Microsoft has purchased a 1.6% stake ($240 million) in the social networking phenomena Facebook. This values Facebook itself at a staggering $15 billion. This is even more incredible due to the fact that Facebook has allegedly not made a profit thus far. This stake will allow Microsoft to be “the exclusive third-party advertising platform partner for Facebook”.

The companies did not comment on how this would impact upon search, will Facebook start popping up more often in Live.com SERP’s? I doubt it, Microsoft will be seeking credibility against the likes of Google when it comes to organic search. That said, has anyone noticed a lot of Youtube videos appearing in Google results of late? This deal makes the $1.65 billion and $580 million takeovers of Youtube and Myspace respectively look like good business.

Mark Zuckerberg has fended off previous attempts to procure facebook at much lower figures, so credit must goto him for holding out this long. With membership predicted to surpass 200 million in the near future, it would be foolish to pass judgement on the final overall value of the network.

Simon
Campaign Executive

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One Response to “Microsoft buy into Facebook”

  1. “That said, has anyone noticed a lot of Youtube videos appearing in Google results of late?”

    Too right! It has become apparent that Google is not so impartial in their SERPs. Just to mention a few… Results with thumbnail previews for YouTube, and their services just happen to be position number one searches like ‘maps’, ‘calendar’, etc… (so convenient!)

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