Facebook in talks to buy Microsoft ad technology - reports

SAN FRANCISCO Fri Dec 7, 2012 1:35am IST

Facebook logos on a computer screen are seen in this photo illustration taken in Lavigny May 16, 2012.REUTERS/Valentin Flauraud

Facebook logos on a computer screen are seen in this photo illustration taken in Lavigny May 16, 2012.

Credit: Reuters/Valentin Flauraud

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Facebook Inc (FB.O) is in negotiations with Microsoft Corp (MSFT.O) about acquiring advertising technology that could allow the social network displays ads on other websites, broadly expanding its advertising business, according to media reports on Thursday.

Facebook is in "serious" discussions with Microsoft about a deal to purchase Atlas Solutions, an ad-serving product that Microsoft acquired through its $6 billion acquisition of aQuantive in 2007, according to reports in the technology blogs Business Insider and AllThingsDigital on Thursday.

The deal could allow Facebook to significantly expand its advertising business by showing ads on third-party websites, mounting a challenge to Google Inc's (GOOG.O) DoubleClick ad network, said the reports, which cited anonymous sources.

The potential price for the acquisition was unclear, though Business Insider said the highest bid for Atlas in Microsoft's previous attempts to sell the business was $30 million.

Facebook and Microsoft representatives declined to comment.

Facebook, the world's No. 1 online social network with roughly 1 billion users, has been moving aggressively to bolster its advertising business with new capabilities, including ads on mobile devices and features that demonstrate the effectiveness of its ads to marketers.

Facebook currently generates 86 percent of its revenue, which totaled roughly $1.3 billion in the third quarter, from ads that appear on its own website.

Shares of Facebook were off 1.2 percent, or 33 cents, at $27.38 in midday trading on Thursday. Microsoft shares were up 7 cents at $26.73. (Reporting By Alexei Oreskovic; Editing by Neil Stempleman)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

TECH SHOWCASE

Apple Results

Apple Results

Apple margin concerns fade, focus shifts to iPhone launch  Full Article 

Expansion Plans

Expansion Plans

EBay plans to expand in Russia despite sanctions.  Full Article 

Outlook Weighs

Outlook Weighs

Qualcomm posts higher quarterly results  Full Article 

'Selfie' Boom

'Selfie' Boom

Sony invests in image sensor production amid 'selfie' boom.  Full Article 

Cyberfraud Case

Cyberfraud Case

Seven arrests made in $1.6 million StubHub cyberfraud case  Full Article 

Q2 Below Forecast

Q2 Below Forecast

AT&T revenue misses estimates as promotion weighs on revenue  Full Article 

WhatApp Leak

WhatApp Leak

Israel detains soldiers after WhatsApp leaks about Gaza casualties   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage