Microsoft has bought a part of Facebook

 Facebook and Microsoft

Microsoft has bought a part of Facebook for $240 million dollars which represents 1.6% of the company.

The amount spent by the world’s largest software maker make it go deeper in tis relationships with a startup based on community.

Besides buying a stake in Palo Alto-based Facebook, Microsoft also will sell Internet ads for its Web site outside the United States, broadening a marketing relationship that began last year.”This is a strong statement of confidence in this partnership and in Facebook,” Kevin Johnson, president of Microsoft’s platforms and services division, said during a Wednesday conference call with reporters and analysts.

Microsoft’s investment points out the increasing value of online communities like Facebook — a place where Web surfers look for dates, connect with friends and family, and share photos, videos and music.

Although MySpace remains the largest social network, Facebook has been growing much faster in the past year.Facebook attracted 30.6 million U.S. visitors during September compared with 68.4 million at MySpace. Microsoft’s entry in the social networking arena — “Windows Live Spaces” — attracted 9.8 million U.S. visitors, according to comScore Inc.

Because Facebook members share insights about themselves on their personal profiles, Microsoft might be able to harvest some of the data to pick out linked ads.
But if the advertising becomes too intrusive or heavy-handed, it could alienate users and decrease traffic to the social network.

To go deeper in the subject…let’s follow this link: The Associated Press


~ by Morgane COM on November 14, 2007.

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