Microsoft aquired Facebook share

The aim of
this partnership is simply to increase profits through advertising on
both sides. Microsoft will sell internet ads for Facebook outside the
US. The company already had an agreement with Facebook to provide
banner advertising and links to the US version of the social networking
site. This was the part of the deal discussed during several weeks.
With this acquisition, Microsoft will become the exclusive third party
seller of overseas advertising outside the US on Facebook. Knowing that
the social networking site currently has 49 millions users, this could
be a huge financial opportunity for Microsoft.

The Facebook deal is Microsoft's answer
in its battle with Google. Looking one year back in October 2006,
Google beat Microsoft with the 1.65bn dollar acquisition of online
video sharing website YouTube.

With this partnership Facebook is
looking to increase its current audience of nearly 50 million active
users by becoming a real magnet for advertiser and also to compete
fiercely with its rival MySpace which currently has 100 million users.
Facebook also wants to take advantage of existing Microsoft skills.
According to Charlene Li, an analyst at Forrester Research, the
software group knew better -in comparison to Google- how to work with
program developers and build computing environments. She said that 
“Microsoft is a company that knows how to build platforms, knows how to
develop relationships with developers. The social networking site is
hoping with Microsoft 's collaboration to struggle less to reach leader
position."

Article Source: http://www.theukarticledirectory.co.uk