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Microsoft Hearts Facebook |
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It cost Microsoft $240 million dollars today to become the designated ad serving partner for Facebook's rapidly growing international development. Microsoft made a costly move that will certainly solidify their long term business partnership with Facebook - but at one hell of a cost. Microsoft obviously has no clue about international traffic, and just how incredibly unprofitable it is. It will take Microsoft at least 10 years to recoup their investment on this $240 million dollar purchase of 1.6% of Facebook. A 10 year investment recoup breaks down to about 20 million a year in profit that would have to be derived to break even. With additional operating costs I very much doubt they will ever see a return. However, getting the foot in the door on potentially one of the most incredible software platforms ever developed is a long term strategic move. Good luck Microsoft, you will need it - heart transplants are risky business.
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