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It was announced today that Microsoft beat out Google, Yahoo! and many others in the bid to be the exclusive third-party advertising partner for social network Facebook.
Google has agreed to pay $240 million for a minority stake (less than 2%) in Facebook, which is valued at over $15 billion dollars.
Microsoft now has the exclusive right to sell Facebook’s international advertising. Since over 60% of Facebook users connect outside of the United States, this is huge.
The big losers
The big losers here are Google and Yahoo!, and that makes me happy. This world doesn’t need an even more powerful Google. And Yahoo! should still be kicking itself for lowering it’s $1 billion buyout offer in 2006 to $800 million, which 23 year-old CEO Mark Zuckerberg wisely rejected. Well Yahoo!, you’ve been rejected again.
Facebook doesn’t need Google (or search for that matter)
Facebook is one of the rare Internet companies that can say that they don’t need Google to maintain their traffic. According to Alexa, Facebook is the 6th most visited web site on the Internet and almost none of that traffic comes from search engines. Facebook doesn’t allow search engines to index it’s users pages.
To listen to a replay of the press conference dial
US: (866) 435-1324
International: (203) 369-1020
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