Microsoft and Facebook Partner for Ads

Oct 25, 2007 - 9:20 am 1 by
Filed Under Social Search

Microsoft and Facebook are new best friends. According to a Wall Street Journal article, Microsoft has invested a considerable sum of money -- nearly $250 million -- to provide advertising on the coveted social platform.

Microsoft Corp. agreed to invest $240 million for a minority stake in Facebook Inc. that values the social-networking site at $15 billion. As part of the deal, the two companies expanded their advertising agreement.

Forum discussion is mixed. Microsoft has valuated the company at roughly $10-15 billion. Facebook is only bringing in $150 million a year. How does it add up?

Others find that Microsoft screwed up.

Looks to me like M$ have got a great deal and FB have gone [nuts].

They've denied themselves any future bids from Google Yahoo! etc., and for what?

A little bit of development cash in exchange for a long term advertising deal - which will get M$'s money back in twenty minutes.

However, even others are happy for Microsoft since this is good exposure for them.

As for myself, I can't say I'm happy with the Microsoft-Digg advertising partnership (I am sick of seeing classmates.com advertisements) so I honestly am a bit skeptical about this relationship.

Additional coverage (lots!) is at Techmeme.

Forum discussion continues at WebmasterWorld.

 

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