Update: Facebook chooses Microsoft over Google
635938
InfoWorld - Facebook will sell a $240 million minority stake to Microsoft, which as part of the deal will also expand the advertising services it provides to the social networking phenom, the companies said Wednesday in a statement.
86299
Plus: Is Microsoft search engine crawling Google? [News.com Extra]
482648
Some companies can battle Google head-on and survive. Facebook can't.
369214
Microsoft prevailed in a high-profile technology industry battle with Google and Yahoo to invest in the social networking upstart.
348954
These days, numbers just seem to blur together. Microsoft is thinking about paying $500 million for 5 percent of Facebook, which would make that company worth $10 billion. VMware, in which parent company EMC recently sold a stake to the public, is currently valued at $30 billion (that's just for VMware, not the whole of EMC).
210804
Looks like Microsoft may have been biding its time to get back at search giant Google. [Missing Links]
589138
There&#39;s been a lot of gossip about the upcoming Google browser and its possible impact on Microsoft. It&#39;s hard to predict what will happen, but it won&#39;t surprise me if an all-out war between Google and Microsoft ensues.
354581
After losing its Facebook bid to Microsoft, Google will on Thursday introduce OpenSocial, development tools for numerous sites.
340882
Today's announcement from Facebook is the reason why Google announced OpenSocial last week. They must have gotten a leak from one of the companies that stood with Facebook, so they knew what was coming. They weren't scared of Facebook's technology, because they didn't respond with technology. They were scared because Facebook has a better advertising story than Google does. They are getting ready to offer some very premium web real estate that (pay attention now) Google can't compete with. And advertising is Google's bread and butter, advertising is to Google as operating systems are to Microsoft. They can't let somebody appear to be better than they are in advertising. Yet that's what Facebook is, better than Google in advertising. Here's what Facebook can do.  Let's say I bought a Wii and I like it. They can tell all my friends "Dave bought a Wii and he likes it." That's a lot more likely to result in a sale  than an intrusive ad like this one, that was displayed next to an email I sent to some friends about their New Networked Living Room. Google thinks I might want to buy Moroccan Lamps, or something called a Unique Shabby Chic (huh?) or Crate & Barrell bedroom furniture. Of course I tune that shit out, I don't even see it. It has zero impact.   Anyway, I was talking with Doc Searls a few minutes ago and he mentioned OpenSocial and I told him it was just a lot of noise meant to distract people from what Facebook was doing in advertising. He hadn't heard anything about it even though he was at a tech conference in Denver today and yesterday. I said there you go, Google's strategy worked. But to no effect, longterm, because Facebook has the momentum and Google, try as hard as they want to stop it, will not be able to, any more than Alta Vista or Infoseek were able to stop Google once they figured out that their lunch was eaten. Google will be around for a long time, I'm not saying they will go away, but Facebook will be around too. And Google will have a hard time catching up to them.  Long-term, however they both have problems because advertising is on its way to being obsolete. Facebook is just another step along the path. Advertising will get more and more targeted until it disappears, because perfectly targeted advertising is just information. And that's good!  8/3/06: "Information is welcome, advertising is offensive."
324513
Facebook will sell a $240 million minority stake to Microsoft, which as part of the deal will also expand the advertising services it provides to the social networking phenom, the companies said Wednesday in a statement.The size of the ownership stake Microsoft will take during Facebook&#39;s next round of financing puts Facebook&#39;s valuation at a whopping $15 billion.&#160;Google had reportedly been courting Facebook as well.In addition to the ownership piece, Microsoft will also extend its existing agreement to provide banner ads to Facebook in the U.S. With this deal, Microsoft will become Facebook&#39;s exclusive third-party ad platform as well as provide Facebook ads internationally.Facebook will likely devote the cash influx from its next financing round to bankroll the torrid growth it is expecting in the coming 12 months in usage and headcount.With about 300 employees now, Facebook expects to have about 700 a year from now, its CEO and co-founder Mark Zuckerberg said last week at the&#160;Web 2.0 Summit.Meanwhile, the site is growing its usage at breakneck speed with about 250,000 new users registering every day.Founded in 2004, it currently has about 49 million active users today, up from 12 million in December. More than half of its active members return to the site daily. Some 59 percent of its users are outside the U.S.Earlier Wednesday, The Wall Street Journal and The New York Post reported that Facebook was in the final stages of making a decision on whether to do this deal with Microsoft or Google.For Microsoft, which hasn&#39;t attained as strong a position in online advertising as it had hoped and lags behind Google, landing this deal could be a major win, as long as Facebook proves to be as attractive an advertising vehicle as expected.The Journal reported later on Wednesday that Facebook expects a profit of about $30 million this year, on revenue of $150 million.Google and Yahoo provide ads for Facebook rival MySpace.Still, questions remain about social networking sites&#39; full potential for advertising, since most of their content is largely unregulated and created by millions of individuals, resulting often in material that is vulgar and objectionable.Facebook plans to share more ideas for revving up its advertising business on Nov. 6, at an event in New York to which it has invited what it calls &quot;its closest advertisers.&quot;&quot;As part of [the event], Facebook executives will discuss new approaches for advertising online,&quot; a Facebook spokeswoman said. &quot;We are not sharing any further details.&quot;Facebook, MySpace, and others are also under close scrutiny from law enforcement agencies in the U.S. and abroad because sexual predators use social-networking sites to stalk and victimize people, in particular minors.The Journal first reported Google&#39;s and Microsoft&#39;s pursuit of the Facebook investment a month ago.
357049
Microsoft Corp  is talking to Facebook about an investment in the company that could value the fast-growing social network at $10 billion or more, the Wall Street Journal reported on its Web site on Monday.
161430
Microsoft Corp  beat out rival  Google Inc  on Wednesday in a battle to invest in  socializing Web site Facebook, agreeing to pay $240 million for  a roughly 1.6 percent stake in the Web phenomenon and expand a  deal to sell advertising.
122300
SAN FRANCISCO -- Google Inc. is setting up a distribution network for social networking applications, adding a new twist in the Internet search leader's brewing rivalry with rapidly maturing startup Facebook Inc.
708407
Microsoft Corp  said on  Wednesday it would pay $240 million for a minority equity stake  in Facebook in a deal that values the social networking Web  site at $15 billion.
448780
Microsoft Corp is talking to Facebook  about buying a minority stake in the fast-growing online social  network that could value the company at $10 billion or more,  the Wall Street Journal reported on its Web site on Monday.
707299
A deal between Facebook and either  Google Inc  or Microsoft Corp  is expected to  be announced in the next 24 to 48 hours, The New York Post  reported on its Web site on Wednesday, citing unnamed sources.
647033
There's a fascinating debate today going on about Scoble and his Facebook data. Here's the story so far. Plaxo, on behalf of Scoble, ran a screen scraper on his Facebook account to download information about at least some of his Facebook friends. Facebook detected the scraper and turned off his account, with an email explaining that he had violated their terms of service. The debate: Who is right -- Scoble or Facebook? While there are certainly arguments that Facebook has some rightness, most of it, imho, is with Scoble. Sure, some of the data may "belong" to his friends, like their birthday and mail address. Technically of course the data doesn't belong to anyone, it's data about them, and many organizations have this data. Are bloggers really saying that organizations have more rights than people? Isn't blogging all about a level playing field? My bank knows my birthday and my email address. Why shouldn't Scoble? (Maybe he shouldn't.) Scoble called a few minutes ago. I asked what the consensus was. He said it was about 70 percent in his favor, 30 percent in Facebook's. I think we can win over the 30 percent by saying that there should be a system whereby people can decide how much information they want to share with Scoble, or people like Scoble, or me, or people like me, or BofA or the DEA, KGB or CIA. Further, that system is not Facebook, unless they change.  Now, I think there's a pretty good chance that Facebook will change and give Scoble his data and turn his account back on. I think Facebook wants to give us access to our data, but if they just turned the feature on, there would be a shitstorm, kind of like the one that's raging right now. Except this time Facebook has defenders, which they must find refreshing, because every time there's been a shitstorm around Facebook they've always been seen as 100 percent evil by most people. (Not by me, btw.) Maybe they're getting smart there over at Facebook. Maybe they will relent, kind of admit they were wrong, and secretly be happy that they got to open their network up some more.  However, if Facebook doesn't open up and allow people a system to say who can access what information, we still have to create that system somehow. Google could have done it, but they didn't. Same with Yahoo or Microsoft. These companies don't want to empower the users, but if they studied history, they'd see that the evolution of computers always comes in fits and starts. A period when the technology is new and people are snowed by the companies and let them have full control. Gradually people understand what's going on, and figure out they're being screwed but they accept it. And then explosively the whole thing disintegrates in a new layer of technology.  It's a big effin loop we're in. One of these times around one of the companies that feels (incorrectly) that they have a lock on their users, will voluntarily give it up and be a leader in Generation N+1. I've never seen it happen, but in theory I think it could.  In other words, Apple and Microsoft could have invented the web instead of TBL. DEC and Data General could have invented the personal computer instead of Apple and Microsoft (I know this is a simplification, there were lots of individuals and small companies that did it.) And IBM could have invented the minicomputer instead of DEC and Data General. And btw, the NY Times and CNN could have invented blogging and RSS.  So Facebook has the opportunity to be a crossover company, part of the next generation -- or a last gasp of the generation that's about to run out of gas. It's their choice. And it's fitting somehow that Scoble is the poster child for users in this cycle.