Sunday, October 28, 2007

Facebook ..The solution for Microsoft Network losses

Microsoft Network is having great problems... was a great way for Microsoft to publish its products but.. Google is taking over now.. the msn search engine, the Hotmail all of them are left behind by most people.
Microsoft is very disappointed with its Online services which were marked by great losses , up to 264 million dollar despite of the sales rise by 25% and 33% of ads income. Here comes the role of Microsoft strategists. Microsoft made a deal with Facebook to provide advertising. Microsoft invested 240 million dollar, is it a good deal ? Will it get something back from that..?

Actually, Microsoft has already lost a deal with Myspace against Google for the same purpose. For the notice, Myspace is the number 1 social networking site ever. But MS didn't put hands down and looked for a deal with No.2. They don't want to see Google "The only man standing" in this field. I guess they're afraid of a potential Web monopoly from Google that could affect the future of Microsoft.

The duration of this deal is ti 2011. Facebook is counting over 50 million user and getting about 250 000 new subscribers every day. If Facebook keep these rates they will be having more than 300 million users by the end of this deal duration. Microsoft is counting of this deal for more targeted advertising.

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