Top Story

e4m_logo.png

Home >> Digital >> Article

Microsoft to acquire equity stake in Facebook; to expand advertising deal for international markets

26-October-2007
Font Size   16
Share
Microsoft to acquire equity stake in Facebook; to expand advertising deal for international markets

Microsoft has announced its plans to acquire a $240-million equity stake in Facebook’s next round of financing, at a $15 billion valuation. The companies would also expand their existing advertising partnership to make Microsoft the exclusive third-party advertising platform partner for Facebook, and Microsoft will begin to sell advertising for Facebook internationally, in addition to the US.

“We are pleased to take our Microsoft partnership to the next level. We think this expanded relationship will allow Facebook to continue to innovate and grow as a technology leader and major player in social computing, as well as bring relevant advertising to the more than 49 million active users of Facebook,” said Owen Van Natta, Vice President-Operations and Chief Revenue Officer, Facebook.

“Making this investment and expanding this partnership will position Microsoft and Facebook to take better advantage of advertising opportunities around the world, and is a great win not only for the two companies, but also our collective users and advertisers. We have partnered well over the past year and look forward to doing some exciting things together in the future. The opportunity to further collaborate as advertising partners is a major reason why we decided to take an equity stake, and is a strong statement of our confidence in the long-term economics of this partnership,” said Kevin Johnson, President-Platforms and Services Division, Microsoft.

With an average of reportedly 250,000 new users registering each day, Facebook continues to experience strong growth both in the US and international markets; 59 per cent of Facebook’s users are outside the US. In August 2006, the companies had announced a US-only strategic alliance that named Microsoft as the exclusive provider of standard banner advertising on Facebook, using Microsoft’s digital advertising solutions and the Microsoft adCenter platform. In early 2007, the terms were extended to 2011.

Tags

Vinik Karnik, Business Head - ESP Properties, talked about what went into conceptualising the first edition of the entertainment marketing report, Showbiz

Rahul Jhamb, Brand Head, Forever 21, on how the fast fashion brand always stays on the pulse of latest marketing trends

Heavy spends on OOH and print sum up this year’s ad spends of YLG Salon

Baba Ramdev brought his sharp wits for an interview with e4m where he promised to disrupt more markets and spoke about he the way he created a brand through consistent and selfless work

Heavy spends on OOH and print sum up this year’s ad spends of YLG Salon

Thomas, Chief Marketing Officer, Diageo India, gives us a peek into the marketing strategy for McDowell’s No 1 Soda, its creation of ‘No 1 Yaari Jam,’ their own set of 4Ps and importance of content

Prior to joining Madison PR in 2012 Chaudhary was Group President Corporate Communications at Reliance Industries Limited.