Marketing Strategy Sealed Air vs Gafcel

Topics: Facebook, MySpace, Microsoft Pages: 13 (4395 words) Published: February 13, 2011




Microsoft Corp., lagging behind Google Inc. in the online advertising market, is in talks to purchase a stake of as much as 5 percent in social-networking site Facebook Inc. The investment may be $300 million to $500 million, giving Facebook an overall value of $10 billion, the newspaper reported on its website, citing unidentified people familiar with the matter. The talks are still preliminary, and Google has also expressed interest. For Facebook, the talks come about one year after a proposed deal with Yahoo collapsed. Facebook then was said to be seeking more than the $1.65 billion Google paid for YouTube - and considerably more than the $580 million News Corp. paid for MySpace in 2005. This move by Microsoft will help bring the software giant further into the realms of the internet. While already synonymous with operating systems and office productivity software, the company hasn't really taken off in areas that rival Google has exceeded in. Investing in Facebook will offer a jump-off platform to get new online software out to the public. There has already been cases of developers selling their applications after they've become popular on Facebook.

News of the talks between Microsoft and Facebook came on the heels of reports of a high-level, confidential meeting at Google on Friday 21.9.2007 in which several executives and investors discussed Facebook. Participants were required to sign non-disclosure agreements, but Michael Arrington of the blog TechCrunch reported that three participants said Facebook was the central topic. He reported that a group of "industry luminaries" attended a cloak-and-dagger meeting at Google's headquarters to discuss how to deal with Facebook, whose 40-million-plus users aren't the issue so much as its open development platform. Arrington said not one but THREE sources fed him the info.

If there is a shred of proof to this leak, I can't help but believe Google has abandoned its attempt to grab a stake in Facebook and that this move is a declaration of all-out war against a company it perceives as a threat to its online advertising business said Joe Wilcox of Microsoft Watch .

If there is any fact to the rumours, one thing is for sure - Microsoft and Facebook are keeping quiet on any negotiations that are taking place.

Facebook has made no secret of the fact that it wants to go public and will likely allow its search box to return keyword-driven results to generate greater online advertising dollars, which would pose a serious threat to Google .

One final thought or let just say an equation:




Microsoft Corporation is an American multinational computer corporation with 79,000 employees in 102 countries and global annual revenue of US $51.12 billion as of 2007. It was founded in Albuquerque, New Mexico, USA on 4th April 1975 by Bill Gates and Paul Allen. It develops, manufactures, licenses and supports a wide range of software products for computing devices. Its headquarters are in Redmond, Washington, USA. Although, best selling products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software with which Bill Gates got in line with his vision "to get a workstation running our software onto every desk and eventually in every home". These products have prominent positions in the desktop computer market, with market share estimates as high as 90% or more as of 2003 for Microsoft Office and 2006 for Microsoft Windows.

Microsoft was founded to develop and sell BASIC interpreters for the Altair 8800. However, they rose to dominate the home computer operating system market with MS-DOS in the mid-1980s. On November 20, 1985, Microsoft released its first retail version of Microsoft Windows, originally a graphical...
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