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Microsoft Will Trade Bing To Facebook? It Makes So Much Sense.

Preston Gralla (no doubt - Read bio) has his finger on the pulse on most things internet related. He's the successful writer of 35 books and is said to have written about technology for more than 20 years... His following headline caught my eye over at,

"Tech's worst rumor - Microsoft will trade Bing to Facebook for shares"

Preston feels, that ..."The rumor is wrong in every way", yet I began to wonder about that saying ...'where there's smoke, there's fire'.

"Microsoft loses billions of dollars a year in Bing, which will never make money" [Preston opines], ...."so if Microsoft swaps it for Facebook stock, Microsoft's stock will jump and ......Microsoft will gain a closer partnership with Facebook.... Facebook then gets a search engine it can use to fight Google"

And [as the article points out] ..... Rick Sherlund with Nomura Equity Research is one believer. He has told Barron's: "Bing isn't important to Microsoft, and so the company should unload it and by doing so, give ammunition to Facebook to take on Google":

"It's in Microsoft's relative advantage to arm Facebook to go after Google more effectively than they could on their own."

Preston Gralla then says of this:"To his way of thinking, Facebook would power Bing with social networking smarts and deliver highly customized search to people, based on their likes, dislikes, interests, friends, and so on."

I do feel there's much more that can/should be taken into account when considering such a Microsoft/Facebook Bing involvement, than just all of the above.

I've made many a mention of ACAP here on my instablog. - It's part of my own 'bio'-when starting to post my 'thoughts' here @ SeekingAlpha.


In fact (back on Jul 1, 2009), I'd even suggested that ...."Users can be more easily 'targeted' then, from 'partner to partner' and site to site.

ACAP (a 'crawler' access protocol permissions), may then be "enforced" on search engines, in some instances. ....A full range of Multi Media buys and such 'offerings' will be both 'sold' & bought in, by what is (now), an independently operated, Microsoft and Yahoo, respectively."

And an intrical part of what I was referring to, is the The newspaper consortium that Yahoo currently have. (Of some 850 odd brands.)

Microsoft are well aware of ACAP. (In my next mention-on Feb 17, 2010, I had noted the following)

..."This is exactly the kind of area in which Microsoft took an interest last autumn, when it began supporting Automated Content Access Protocol (ACAP), the newspaper business' preferred system of rule-making for whether search engines can go behind the wall or not."

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Many news articles of interest are already being 'shared', on Facebook. Facebook Ads can only grow from strength to strength. Facebook have just paid $1 billion for Instagram and now Gets the 'Holy Grail' of Data - of which (in fact)...."Experts say it may be all about location, location, .- Snap a digital photo and the file typically includes embedded information on where and when it was taken."

With Bing under Facebook's wing (with ACAP then applied by many) all of a sudden Facebook, Microsoft and Yahoo and all newspapers involved (for starters), immediately have what becomes such an almighty grip on Targeting "intent" Users - back and forth. (And, Globally.)

I must agree with Rick Sherlund of Nomura Equity Research. In that:

"It's in Microsoft's relative advantage to arm Facebook to go after Google more effectively than they could on their own."

It's also to Facebook's (and to all the [] newspapers of the world's) advantage, too!

Always, only an opinion.


ps; "A Microsoft-Facebook Swap?"

LOOK: On Apr 13: $0.94 Down 0.04 (-3.99%)

Disclosure: Long LOOK and happy to be so.