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	<title>Comments on: 5 Reasons Why Microsoft bought 1.6% of Facebook for 240M$!!!</title>
	<atom:link href="http://www.watblog.com/2007/10/26/5-reasons-why-microsoft-bought-16-of-facebook-for-240m/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.watblog.com/2007/10/26/5-reasons-why-microsoft-bought-16-of-facebook-for-240m/</link>
	<description>The Refreshing Blog on Web, Advertising and Technology in India!</description>
	<pubDate>Fri, 29 Aug 2008 20:21:24 +0000</pubDate>
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		<title>By: metalisa</title>
		<link>http://www.watblog.com/2007/10/26/5-reasons-why-microsoft-bought-16-of-facebook-for-240m/#comment-9509</link>
		<dc:creator>metalisa</dc:creator>
		<pubDate>Wed, 30 Jul 2008 15:36:49 +0000</pubDate>
		<guid isPermaLink="false">http://www.watblog.com/2007/10/26/5-reasons-why-microsoft-bought-16-of-facebook-for-240m/#comment-9509</guid>
		<description>are u sure 1,6% or 16% for 240M$?</description>
		<content:encoded><![CDATA[<p>are u sure 1,6% or 16% for 240M$?</p>
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	<item>
		<title>By: Amro</title>
		<link>http://www.watblog.com/2007/10/26/5-reasons-why-microsoft-bought-16-of-facebook-for-240m/#comment-1532</link>
		<dc:creator>Amro</dc:creator>
		<pubDate>Sun, 28 Oct 2007 11:41:24 +0000</pubDate>
		<guid isPermaLink="false">http://www.watblog.com/2007/10/26/5-reasons-why-microsoft-bought-16-of-facebook-for-240m/#comment-1532</guid>
		<description>Interesting! IN depth understanding i say! Keep it up!</description>
		<content:encoded><![CDATA[<p>Interesting! IN depth understanding i say! Keep it up!</p>
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	<item>
		<title>By: narain</title>
		<link>http://www.watblog.com/2007/10/26/5-reasons-why-microsoft-bought-16-of-facebook-for-240m/#comment-1521</link>
		<dc:creator>narain</dc:creator>
		<pubDate>Sat, 27 Oct 2007 05:40:20 +0000</pubDate>
		<guid isPermaLink="false">http://www.watblog.com/2007/10/26/5-reasons-why-microsoft-bought-16-of-facebook-for-240m/#comment-1521</guid>
		<description>Read this: http://reddevnews.com/news/article.aspx?editorialsid=9183 More than the above said reasons, the way i see the deal is more to be a long term strategic partner deal. Lets take the case of the 3 biggest SNS on the net. Myspace [with murdoch group], Bebo [ad. deal is with Yahoo!], facebook [ad deal with MS]. 

The game plan if you look from Yahoo! is that they acquired Zimbra, they are re-organising their portfolio. They moved Yahoo! photos to Flickr. In the social media scene, they already have the larger eyeballs in del.icio.us, mybloglog, flickr and other small deals they had. They are strong in Mobile space.

Google the monster gets his 98% of its revenue from its ever expanding online advertising, with smart startups to buy in to keep more audience to clue in. From Blogger, Orkut, Jotspot, Writely and the recent Jaiku, everything revolves around users and these users are captive users locked to a single big owner.

That leaves a larger question of MS. MS is very strong in the enterprise segment and SME segment. But on the consumeer front segment they are prettly lame. Except for the hotmail acquisition, nothing in last decade is impressive from MS. This deal gives them users with a big thumbs up. Users at the end of the day with smart &#38; innovative online advertising will justify the increasing cost per click for advertisers. Today's MS lacks users, with this deal, along with a long term Ad deal with Facebook, they can save some face. But the big value is not with Facebook, but with their buy out of Aquanitive. If they can smartly build on aQuantive's distribution and client consolidation, then you will see a good come back for them.

This doesn't leave the table for Google wholeheartedly, the slight improvement in Yahoo!'s earnings are results of their implementation of panama, and Jerry Yang does his job decently well to do th reorganisation. Now the big question is how MS &#38; Yahoo are going to respond to the "presence services" like Twitter, Pownce and like. 

With the Murdoch empire getting larger &#38; larger online [they acquired Dow Jones &#38; Wall street in turn] the residual value Murdoch's investments will be higher than these guys. For me atleast, i still rate WSJ and Dow Jones at far higher plane than other publications. So, if they start promoting, MySpace, combined with their MTv audience, then the world once for all will be changed. 

As for as a watcher of the online advertising space both as passion &#38; profession, its time, that the online advertising [all search / cpc / display / behavioral ] is getting a big thumbsup from advertisers and brands worldwide, and MS buy paying a decent price snatched a first mover advantage in a SNS site flocked by youngsters and people who can afford to buy things online.</description>
		<content:encoded><![CDATA[<p>Read this: <a href="http://reddevnews.com/news/article.aspx?editorialsid=9183" rel="nofollow">http://reddevnews.com/news/article.aspx?editorialsid=9183</a> More than the above said reasons, the way i see the deal is more to be a long term strategic partner deal. Lets take the case of the 3 biggest SNS on the net. Myspace [with murdoch group], Bebo [ad. deal is with Yahoo!], facebook [ad deal with MS]. </p>
<p>The game plan if you look from Yahoo! is that they acquired Zimbra, they are re-organising their portfolio. They moved Yahoo! photos to Flickr. In the social media scene, they already have the larger eyeballs in del.icio.us, mybloglog, flickr and other small deals they had. They are strong in Mobile space.</p>
<p>Google the monster gets his 98% of its revenue from its ever expanding online advertising, with smart startups to buy in to keep more audience to clue in. From Blogger, Orkut, Jotspot, Writely and the recent Jaiku, everything revolves around users and these users are captive users locked to a single big owner.</p>
<p>That leaves a larger question of MS. MS is very strong in the enterprise segment and SME segment. But on the consumeer front segment they are prettly lame. Except for the hotmail acquisition, nothing in last decade is impressive from MS. This deal gives them users with a big thumbs up. Users at the end of the day with smart &amp; innovative online advertising will justify the increasing cost per click for advertisers. Today&#8217;s MS lacks users, with this deal, along with a long term Ad deal with Facebook, they can save some face. But the big value is not with Facebook, but with their buy out of Aquanitive. If they can smartly build on aQuantive&#8217;s distribution and client consolidation, then you will see a good come back for them.</p>
<p>This doesn&#8217;t leave the table for Google wholeheartedly, the slight improvement in Yahoo!&#8217;s earnings are results of their implementation of panama, and Jerry Yang does his job decently well to do th reorganisation. Now the big question is how MS &amp; Yahoo are going to respond to the &#8220;presence services&#8221; like Twitter, Pownce and like. </p>
<p>With the Murdoch empire getting larger &amp; larger online [they acquired Dow Jones &amp; Wall street in turn] the residual value Murdoch&#8217;s investments will be higher than these guys. For me atleast, i still rate WSJ and Dow Jones at far higher plane than other publications. So, if they start promoting, MySpace, combined with their MTv audience, then the world once for all will be changed. </p>
<p>As for as a watcher of the online advertising space both as passion &amp; profession, its time, that the online advertising [all search / cpc / display / behavioral ] is getting a big thumbsup from advertisers and brands worldwide, and MS buy paying a decent price snatched a first mover advantage in a SNS site flocked by youngsters and people who can afford to buy things online.</p>
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