Business, Facebook, General ramblings, Google, Microsoft, Orkut, Social Networking, Technology, Thoughts

Microsoft gets a slice of Facebook

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.

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8 thoughts on “Microsoft gets a slice of Facebook

  1. Pingback: Ghillie Suits » Microsoft gets a slice of Facebook

  2. vow thts a really good move. face book is far more used than orkut. lets see what microsoft adds to it. I checked out Yahoo Mash and it was really slumpy. I knew yahoo tried to acquire Facebook but they didnt sell πŸ™‚

  3. OMG, did you actually made that post Ruhi or was it somebody who stole your password and made it? πŸ˜›

    Anyhoo, I have to agree with you, this is a neat movie by Microsoft. I don’t know how much it’s gonna work in their favour though. And I just hope they keep their adverts subtle and not make it into another Hotmail.

  4. @Maverick, I didn’t like Mash either. It’s boring; plus all my friends are at Facebook, so it doesn’t make any sense to me.

    Zuckerberg will probably make Facebook public. That was one of the reasons he wouldn’t sell it. πŸ™‚

    @Ish, Hehe…someone else stole my password πŸ˜› Actually, I have never been anti any particular company. Have I? Heh. Even I hope that they don’t cluster Facebook with stupid ads, like they did with Hotmail. Why do you think this might not work?

  5. I just have a feeling it might not work because almost all of MS’s plans are crashing badly these days. And it really depends on what they plan to do if they have to make it work. It might, it might just not.

  6. @ish, you just uttered the magical words. πŸ˜› I hope they don’t put up annoying Microsoft Live Search ads and stuff like that. That will put off LOTS of people.

  7. After i read this story first, i just couldnt believe my eyes, 15b$ valuations for Facebook. Amazing stuff…
    I read somewhere that after this deal, microsoft will actually be able to sell Facebook ads in some states of US. This also makes the point one blogger long before asked… ” What are MS Biggies doing on Facebook?”. Almost all of them hv thr profiles thr
    πŸ˜‰

  8. @Vaibhav Pandey–>Technofriends Team:

    Amazing indeed! It might be over-valued for all you know…and I have very good reasons to believe that it’s over-valued. Most of the good stuff are over-valued anyway. I thought that the deal focused on MSFT getting ads for the rest of the world except US? I might be wrong there. I don’t know.

    Almost all of them hv thr profiles thr πŸ˜‰

    Oh really? Heh. That’s interesting. Can you give me some names?

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