The latest in the ‘on-going’ deal news is the buying of 1.6% stake in Facebook by Microsoft. This $240 million investment by Microsoft in Facebook, is expected to give boost to the ‘online advertisement’ section of ‘Microsoft’. The social networking site scores over in terms of the number of unique visitors growth from its counterpart ‘Myspace.com’. Facebook is a three year old company founded by Mark Zukerberg, which offeres a platform for young people to interact and create their own webpage. It is expected to break even this year with revenue of about $150 million. Behind the enormous success of ‘Facebook’ is its business plan and they are already planning to launch the non-English version of the page!
Well what does this deal have in store for Microsoft? I must a great deal, because Microsoft has recognized the potential of online advertisement. Advertisers are expected to shell out about $900 million alone on online advertisement. Well why facebook? The answer lies in the enormous potential that facebook has got in terms of data, it has information on people’s likes and dislikes , hobbies and their interests, that becomes easy target for advertisers.
In case of Facebook the deal offers much more that it could ask for; in terms of equipments, infrastructure and manpower.
So it definitely is a great deal!