After ages, Microsoft did something smart and got a small slice of Facebook for $240 million, which is actually not much for the software giant if you take a look at the company’s cash flow statement. The deal ends in 2011. This gives Facebook lots of cash to hire more developers. Microsoft gains access to a new advertising venue, but what is probably more important for them right now is the fact that they’ve beat Google. If you guys remember, Google had partnered with MySpace earlier and they also own the “immensely” popular (at least in Brazil and India) social networking site Orkut. I think Microsoft really needed this deal, especially after Ballmer said that they are looking to acquire around 100 start ups in the next year or so. Looks like he’s finally doing something right.
Zuckerberg is smart too. He’s given Microsoft only 1.6% of his growing empire. Right now, it looks like a win-win situation for both the parties.
What kind of advertisements do we expect to see? I definitely don’t want to see “Live Search” boxes. 😐 Else I’m quitting Facebook too. As it is, all those crazy application requests are driving me crazy. So, I generally don’t send requests to my friends to add these applications. I wish they would do the same. It will save me a few clicks.
By the way, I would love to see personalized URLs on Facebook- something like what MySpace and LinkedIn let you do. I wonder why we haven’t gotten that option yet.