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EcommerceBytes-NewsFlash, Number 1650 - October 25, 2007 - ISSN 1539-5065     Previous |
Microsoft to Serve Ads on Facebook, Served Stake in Return
By Ina Steiner
EcommerceBytes.com
October 25, 2007




Microsoft will take a $240 million equity stake in Facebook's next round of financing at a $15 billion valuation, and the companies will expand their existing advertising partnership. Under the expanded strategic alliance, Microsoft will be the exclusive third-party advertising platform partner for Facebook, a social networking site. Microsoft will begin to sell advertising for Facebook internationally in addition to the United States.

On August 22, 2006, the companies had announced a U.S.-only strategic alliance that named Microsoft 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.

The Wall Street Journal noted that "Facebook presents a big opportunity for online advertising, in part because it collects detailed information about its users - such as their hobbies, favorite music, location, age, and gender - that can be used to place highly targeted ads."

Facebook said 59 percent of its users are outside the U.S. and experiences an average of 250,000 new user registrations daily.

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