One Small Step for Microsoft, One Giant Leap for Facebook
Is Microsoft back in the game? If you asked this to someone from 1997 who had, probably accidentally, travelled 10 years into the future, they would look at you like you were from another planet. Or Europe. But in today’s day and age, of iPods and ad networks, Microsoft has been left yearning for some of the hot air that is slowly filling Bubble, Part II. Some wind beneath their wings, as Bette would say.
Facebook is it. No, that’s not me talking. In fact, if it weren’t for advertising and the (da DA!) new ad platform that they are rolling out on November 6 — with much fanfare — I would say, whoa, nelly. Social networking is cool and all, but it’s not going to solve all your problems. And its rapid growth, according to Datamonitor (via MarketingCharts) is going to plateau in 5 years.
So are they worth the $15 billion they were valued? Analysts said they just needed a number so that they could put a dollar sign to the percentage that Microsoft bought yesterday, reports the Times in the UK. The much-publicized deal will expand Microsoft’s ad deal to an international level – v.important because 60% of Facebook users apparently are non-US. And, of course, it gives them, not a leg up, but maybe an inch forward, in the race against Google for ad revenue. Much like a high-stakes game of "Mother, May I?"
So where will Facebook go? Public? They’ve been holding out, and probably will for some time. What will they do? Unveil the platform, and make every marketer go "ahhhh."
And what is the best way to spend $240 million? Are they gonna put their Google shoes on and go on a hiring frenzy? Perhaps this is the wrong question. What is the best way to spend $15 billion? This might get Mark Z. thinking.
The "S" in Sell stands for Success — not Sucker. But the real suckers here just might be Microsoft — check out Silicon Alley Insider’s post about the transaction.
