Sunday, 4 November 2007

Facebook Gets Traction


Microsoft's recent investment in FaceBook values FaceBook at about US$15 billion. Is this realistic?

Anecdotally, I have found myself using FaceBook more recently than any other social network. Others have too. Microsoft's own employees have been using FaceBook long before any investment was discussed. The same applies to the leaders of New Zealand's interactive advertising community. FaceBook would appear to be their 'social network' of choice.

What impact might this have on the wider Internet landscape, particularly on Google? Social networks and search are two separate functions for most users, but will that last? Can search be integrated into social networks in a way that is seamless and adds value to users? I believe it can.

The skirmish that has prompted so much corporate and investment activity in this area can only grow as these platforms consolidate. From my perspective, and with the positive impact for its advertising network under the terms of its share purchase, Microsoft has got a bargain.

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