MICROSOFT STRIKES DEAL WITH TWITTER AND FACEBOOK

Posted Oct 21, 2009

Microsoft Corporation (NASDAQ:MSFT) has made a deal with Twitter and Facebook. The deal is non-exclusive. Facebook and Twitter will both integrate real-time feeds of status updates and tweets into the Bing search engine service. Twitter hit about 5 billion tweets yesterday and Facebook has the most number of status updates than any other service. Facebook sends out an estimated 40 million status updates per day.

Microsoft Bing’s market share will benefit from this deal as real-time news is becoming a preference for people. Traditional news agencies are suffering from this and are cutting staff and newspaper circulation. Google will have to step it up if they want to retain their customer base.

Facebook users will be allowed to decide whether they want their status updates to be public or not. The financial details of the deal are undisclosed, but it is expected that the Redmond-based software company will be paying both Facebook and Twitter millions of dollars along with revenue-sharing deals. Microsoft owns about 1.7% of Facebook through a venture capital deal and has an exclusive advertising partnership with the social network.