facebook bites on evil empire hook

Microsoft has acquired a small stake in Facebook giving Microsoft a 1.6 percent stake in Facebook at a cost of about $240 Million dollars.

In exchange for Microsoft’s investment, Microsoft is looking at a huge opportunity to extend its web services division into advertising across the popular social networking community.

Now this is where this becomes commentary:

Microsoft has never really been the big powerhouse in online services despite its role in the development of operating systems. I fear this is a huge mistake as they are reliant on their investment in aQuantive to help establish the business of developing ad space in the social network.

Microsoft's thinking is flawed, just as it has been in the past and just as it has held the company back from dominating the Internet as they have the software arena for a decade.

It we look at the history we can see the purchase of aQuantive for about $6 billion in the summer of 07' is a resource they will utilize to work ads across the Facebook community. So one would expect with their traffic (Facebook) there are zillions of eyeballs on these pages that have been created by users). This traffic is worthless for ads space. No one is considering ads on a facebook page. Facebook is making out like a bandit in this deal by accepting the money and helping it grow. The stake better be more of an investment then a buy-in for the ad space because the ad space is not worth it.

Facebook and MySpace is a joke!
All of these "social network" sites are a joke. We look at this like it's something new! Geocities did it years ago as have many others. All you have now are a couple more tricks.

Good buys and winner
A great purchase was youtube by Google. This is something a large company should buy. The world is going broadband and people are expecting to see more interactive and rich media. As always, Google will come out ahead.

Facebook's mistake:
Remember that in the past before the anti-trust lawsuit and following it people worried Microsoft was too strong with their position in software and its effect on hardware sales and delivery. Now Facebook, something many people perceive as online fun and a community network service is now in bed with Microsoft. What does this all mean? Take some time to think about it.