Facebook and Microsoft have been in talks for quite a while now. The duo had been trying to finalize a deal on the sale of Atlas ads network.

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In the past, we reported that Facebook was all set to acquire the Atlas ads network which, until recently, was owned by Microsoft. Microsoft, on the other hand, was eager to rid Atlas. And now, the deal between the two tech giants has finally been sealed with Facebook pocketing Atlas at an estimated price of $100 million.


Atlas ads

Ever since Microsoft bought Atlas, it has been trying to sell off the ads network in bits and pieces. Apparently, the company was clueless as to how to run the ads network on its own.

Facebook, on the other hand, holds online ads as its future. The company has launched a major push to expand the scope of Facebook advertisements, possibly beyond the social network itself. Moreover, Facebook also intends to standardize the costs of its ads.

To do this, it needs an external ads network which can let it estimate the value of ads on non-Facebook sites. By comparing this value with the value of its own ads, Facebook can then position itself to provide better ads at fairer prices. Eventually, the social network aims to extend the scope of its ads beyond Facebook and serve ads on other sites, much like Google currently does.

The acquisition of Atlas ads network is a very important step for Facebook. And if the company treats this acquisition right, it may be able to pose Google’s ads revenue a substantial threat in the coming days.

Courtesy: All Things D

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  On March 1, 2013(1 year, 8 months ago.)

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