Following Microsoft’s $240 million investment in Facebook for a small slice of their pie rumours are rife about this deal paving the way for the integration of live search functionality within the social networking site. The inflated valuation of the small stake is undoubtedly an attempt by Microsoft to keep Google at bay but could also be an indication that there is elements of the deal which incorporate an agreement to have live search integration. If this is the case then it could be a good investment for Microsoft as they have struggled to achieve any significant share in the search market place and the volumes available through their paid search platform have disappointed advertisers since its release.
The benefits to Facebook come from the simple fact that users would no longer need to leave the site to perform a search and so would spend more of their timeon the site, thus increasing appeal to advertisers. Oh, and theyve probably negotiated a revenue share on the money generated from Facebook based searches too. The only question that remains is will people using Facebook actually want to perform a web search? Well Myspace and Bebo both have the functionality, powered by Google and Yahoo respectively, so logic would suggest there is something in it. Whether thats worth $240 million, only time will tell.
How the search function may look:
