Microsoft has won a high-profile technology industry battle with Google and Yahoo to invest in the social networking upstart Facebook. The two companies said on Wednesday that Microsoft would invest $240 million for a 1.6 percent stake in Facebook.
The Facebook growth story, as recounted repeatedly by executives, investors, and spokespeople there, is that the company has been steadily growing at 3 to 3.5 percent a week, a rate supposedly unchanged since Facebook opened its doors to all users. Through the miracle of compounding, that rate should give Facebook 200 million users in nine months. [24×7]
Judy’s Book Calls It Quits
Word on the Web is that Judy’s Book, which recently revamped its business model, may be heading for the big sleep.
After struggling to monetize its traffic, Judy’s Book shifted its business model away from local reviews to emphasize coupons and local deals. The firm had raised over $10 million in two investment rounds. This follows the sale of Judy’s Book competitor InsiderPages to IAC’s Citysearch and the failure of Backfence.com.
Could local be faltering? The evidence would point to the contrary.
– Internet ad spending will reach $62 billion and surpass all other media by 2011; local online spending will reach $19.2 billion. Local search is projected to be $4.1 billion. Veronis Suhler Stevenson, August 2007
– Local search is the second most popular online activity after e-mail. Piper Jaffray (2007)
– 60% of all local business searches now happen online (33% happen in print yellow pages) and 82% of the people using local search sites follow up their research with offline action. TMP Directional Marketing-comScore, August 2007 [24×7]
Entrepreneur University Sets Keynoter
The NWEN’s Entrepreneur University’s morning keynote presentation on November 9th will feature Peter van Oppen of Trilogy Equity Partners, former Chair and CEO of Advanced Digital Information Corporation (ADIC) and current Trustee and Chair of the Investment Committee at Whitman College. During his 17 years at the helm of ADIC, van Oppen took the data storage company from $10 million in annual revenue to a nearly $800 million acquisition by Quantum Corp. last near. Van Oppen joins fellow keynoter Sleep Country USA Founder Sonny Kobe Cook along with more than a dozen other top guns loaded with tips to help you set your business soaring. Click here to view the full agenda for the day. [24×7]
Marchex Names Hanauer Vice Chairman of its Board of Directors
Marchex has announced that it has named Nick Hanauer vice chairman of its Board of Directors. A pioneer in the online industry, Hanauer was the founder and chairman of aQuantive (formerly Avenue A Media, Inc.), a leading global digital marketing company, which was acquired by Microsoft in July 2007. He also previously served as its CEO.
“Nick’s track record of success in identifying and executing against revolutionary advertising and consumer-focused opportunities, from Amazon to aQuantive, makes him the ideal addition to Marchex’s Board of Directors,” said Russell C. Horowitz, Marchex Chairman and CEO. “His experience, leadership and in-depth understanding of consumers, technology and advertising will provide significant value across our entire organization.”
“I have been very fortunate to be involved with a number of transformational online markets and companies. The local online market is forecast to reach $19 billon in the next five years and I believe Marchex has the strategy, assets and talent needed to fully capitalize on this massive opportunity,” said Hanauer. “I look forward to working actively with the management team and board to help the company become the local market leader.” [24×7]