Finally, Microsoft is showing it's serious about online advertising. For the most part, the company has let Google take more and more online real estate, such as with the latest deal with MySpace.
But, maybe things are changing (and, even after billions in stock buybacks, there is certainly enough money to compete against Google).
Well, Microsoft has cut a deal with a fast-growing social networking site, Facebook. The site was founded by a college student for college students. Since early 2004, the site has become #2 in the social networking space, with about 9 million registered users (it is also #7 for overall traffic in the US).
For three years, Microsoft will be the exclusive online advertising provider for Facebook (using Microsoft's new technology offering, adCenter).
What's the amount? No clue. Nothing was disclosed.
But, given the big bucks swirling around, it is likely Microsoft had to pay something up front.
What's even more noteworthy is how fast Microsoft acted. Apparently, the discussions on the deal started late last week (kind of amazing, given it is August).
Then again, after losing MySpace, Microsoft desperately needed a quick win – and a deal with Facebook is certainly impressive.
Tom Taulli is the author of various books, such as the Complete M&A Handbook and operates InvestorOffering.com.
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