Posts Tagged ‘yahoo’

Facebook is Microsoft’s rebound fling! Will we see a happy ending ?

After months of bickering, Microsoft and Yahoo did not tie the knot. The decision while celebrated by some, disappointed others, including Yahoo. Aw Yahoo I understand what is to be broken hearted.

Adding insult to injury is the news from WSJ reporting Microsoft’s bankers have informally approached Facebook over a possible acquisiton. Flashback time: Microsoft invested $240m for a 1.6% stake (which valued Facebook at $15bn) and was an all advertisement deal.

Knowing that, what Microsoft stands to gain from this deal is unimaginable. The affair with Yahoo was to try and build up a stronghold in the search and ad market (to compete with Google), and Facebook hasn’t (yet) been a strong ad platform as one would’ve thought it out to be. In fact, it is yet to present a sustainable source of revenue (1$ gifts can’t do it all). And if Microsoft has already locked up the pageviews, where do they go from there ?

I have to say as much as I love and respect Microsoft, Livebook doesn’t sound appealing to me.

I guess we’ll only have to see if Microsoft updates it’s relationship status from ‘It’s complicated’ to ‘In a relationship’, and at what point will Yahoo update its ‘Looking for’ ?

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Posted on May 8th, 2008 by Bhavi  |  No Comments »