Microsoft
Corporation(NASDAQ:MSFT) and Facebook Inc(NASDAQ:FB) are reportedly working on
an agreement that is likely to place the social networking company one step
closer to releasing an ad network capable of competing with anything as huge as
Google and change the very definition of online advertising.
As per a number of
industry sources, Facebook has been negotiating with Microsoft to purchase
Atlas Solutions, an ad-serving product that Microsoft had bought along with
aQuantive in lieu of $6 billion in the year 2007.
Microsoft has been
making attempts to sell Atlas since years. A source reveals that a company was
interested in purchasing it. Recently, Microsoft is believed to have ended
negotiations with the company while moving forward with a deal with Facebook.
Since that time,
employees of Microsoft and Facebook have contacted other ad tech companies to
do research for the agreement. A source present in one of the companies has
briefed BusinessInsider on details of the discussions.
Even though, ownership
of Atlas was the primary reason why Microsoft had purchased aQuantive for $6
billion in the year 2007, it appears that Facebook will have to shell a much
lower price. A source reveals that before Facebook’s negotiations with
Microsoft, the highest bid for Atlas was $30 million.
Press officials for
Microsoft and Facebook have refused to comment on this story.
Purchasing or building
ad serving technology is considered to be one of the last tasks that Facebook
requires to complete before launching an ad network for third-party web sites.
An industry source says
that the social networking company needs infrastructure since they are
dependant on many intermediaries.
A Facebook-powered
Atlas-supported ad network is considered to be tremendous since Facebook
happens to be the only company in the world that owns a billion email
addresses, phone numbers and home addresses. This feature lets Facebook to
accomplish something that no other website can do.
Very good. Let's see...
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