Late Tuesday evening, Microsoft announced
that Facebook had agreed to allow the software company to
provide search and advertising listings to Facebook's 9
million users. The Wall Street Journal reported that the
arrangement was for three years.
There are indications that the deal was an attempt to
quickly rebound after watching Google walk away with the
exclusive rights to provide advertising to MySpace's 100
million registered users earlier this month. Microsoft said
in a statement that talks between it and Facebook started
only last week.
Microsoft is trying to make up ground on Google in the area
of search. When it comes to cutting exclusive deals with
social-networking sites, one of the Web's fastest growing
sectors, the first round goes to Google, which agreed to pay
MySpace's parent company, News Corp., $900 million over
three years as part of the arrangement. Microsoft did not
disclose financial terms of its agreement with Facebook.
Microsoft will post banner advertising and sponsored links
that should appear on Facebook in the fall the companies
said.
"We're excited to be innovating with Microsoft to build a
world-class advertising solution that allows Facebook to
deliver the best advertising experience in social media,"
said Owen Van Natta, chief operating officer of Facebook,
said in a statement.
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