Microsoft Trying to Acquire Facebook?

If you can’t buy them, beat ‘em? That appears to be the new strategy of Microsoft who according to Kara Swisher is trying to go organic like Granola and acquire as many Web 2.0 properties as possible. This strategy will supposedly differentiate them from Google. One of those companies that they are looking to potentially acquire is Facebook. Will they be willing to give Facebook half the value of Yahoo? Not sure but apparently they are interested in making an acquisition.

If Microsoft went ahead and acquired Facebook it would be the largest social networking acquisition in history and it would also could be one of the most over-valued acquisitions ever. Making moves like this makes Microsoft look desperate. They are obviously struggling to figure out a way to compete with Google and it appears that they are willing to spend anything it takes to get there, even if it doesn’t pan out.

The one problem with acquiring “hot” Web 2.0 properties? Most of them haven’t figured out a way to make money. Kara Swisher references one of her prior posts, stating that:

Here’s a list: LinkedIn. Digg. Flixster. Slide or RockYou. Veoh. WordPress. Sphere. Sugar. Some international stuff. And more.

Then, some noted, Microsoft would have to give massive financial incentives to those entrepreneurs to stay and thrive. Most importantly, it would have to keep its Redmond hands from interfering.

Now that would send shivers up the spine of Larry and Sergey.

Really? Would Google be scared if Microsoft purchased a suite of disconnected web services? Kara Swisher seems to think so. While the web services that Kara mentions definitely have value to their entities, I’m not so sure that they could figure out a way to make these services profitable. This current strategy appears to be a last ditch attempt for Microsoft to acquire a large group of web services and build a new web powerhouse from the ground up.

It has never been done this way and I’m not sure that it ever will. If anybody is going to try though, it would definitely be Microsoft. Do you see any purpose of Microsoft to make a bunch of disconnected acquisitions?

 



Recommended Articles


The AllFacebook Marketing Conference 2012 Returns to San Francisco

The AllFacebook Marketing Conference is back in San Francisco on June 28-29. Join us for our second conference that offers a how-to guide for marketing to Facebook’s 800 million users. Special early pricing is available for only $249 until February 15, so register today. A full agenda will be announced soon. Keep an eye on our event site for more information

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment

Send us a Tip

tips@allfacebook.com
[Inside Social Apps 2012]
[AllFacebook Stats: Facebook Analytics for Your Business]
[How can Facebook change your business?]

Upcoming Events

Inside Social Apps

February 8-9, 2012 | San Francisco

Inside Social Apps

Developing & monetizing on social & mobile platforms

Social Gaming Summit

May 23-24, 2012 | Berlin

Social Gaming Summit

Where Gaming Meets the Social Web

AllFacebook Marketing Conference

June 28-29, 2012 | San Francisco

AllFacebook Marketing Conference

Your how-to guide for Facebook marketing.