Is This A Slice of Hope For Facebook Shares?
In some good news for Facebook (NASDAQ:FB) and its beleaguered shares, Salesforce.com (NYSE:CRM) is reportedly acquiring social media ad-targeting company Buddy Media for $800 million. Salesforce, which is something of a cloud-computing pioneer, reportedly managed to beat out Google (NASDAQ:GOOG) for the deal.
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Five-year-old Buddy Media largely helps brands navigate Facebook, and is slowly also expanding to other social media platforms such as Twitter, LinkedIn (NYSE:LNKD) and Google+. It helps companies maintain apps, advertisements, and pages on Facebook.
Last year, Salesforce bought Radian6, another social media platform company, for $326 million. Last week, Oracle (NASDAQ:ORCL) announced having bought Vitrue, also a social media marketing specialist, for more than $300 million.
L’Oreal reportedly used Buddy Media to embed product ads on the Facebook pages, generating 21 million impressions from 6,000 salon sites with 1.7 million clients. Pretzel Crisps was another client and managed to double its Facebook fan count with the partnership.
The Buddy Media deal definitely highlights the value of Facebook to big brands. The social network’s ad space has faced some skepticism recently, with General Motors (NYSE:GM) announcing it was pulling its paid ads from Facebook. Facebook’s revenue strategy has been under scrutiny from analysts since the company decided to go public. The social network seems concerned as well, mentioning in a filing that it was still figuring out how to use mobile advertising optimally and profitably.
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