Wednesday, October 24, 2007

Skyrocketing value of online communities


It’s surprising about Microsoft corp’s investment in Facebook Inc. - $15 billion for 3 ½ year old internet hangout, or the rare shun of online leader Google Inc.

Microsoft paid $240 million price for 1.6% stake in Facebook. This clear the view, world largest software maker, crudely wanted to deepen its relationship with a startup that didn’t have $200 million in annual revenue.

By stamping the deal, Microsoft had loosed previous high-stake biding battles to taking stake in AOL, internet ad service DoubleClick Inc, and taking the ownership of online video sharing pioneer YouTube. Microsoft finally cooked-up Google by taking the stake of Facebook Inc.

Microsoft’s investment, increase the value of online communities like Facebook, Orkut – a place where people look for dates, share music videos and photos, connect with family and friends.

News corp. in 2005 paid $580 million for outright ownership of MySpace.com. Microsoft established the current market value of Facebook to $15 billion, by his investment in the same.

Although Myspace remains the largest social network, while there is so many social site for different activity, like Digg (community-based popularity website), delicious (social bookmarking), Dekoh (Sharing photo, music, books etc direct from there desktop without uploading), Flicker (photo sharing), Orkut (social interacting website) and many more….

Google’s current social network (Orkut) has seen relatively good success on the globe.

32 year old company Microsoft becoming more internet savvy by his successful courtship of Facebook.

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