Just one day after the Easter holiday in America, two tech giant companies and long-term partners, Microsoft and Facebook spent over $2 billion dollars to buy patents and a photo sharing website and also as a potential rival to the social networking company. As a long term partner with Facebook, the world’s largest software company bought over 800 patents from America Online (AOL). Microsoft was willing to spend more cash than several tech giants including Google, eBay, and Amazon who were also interested with those AOL’s patents.
Using plenty of cash on hand, Microsoft has shielded its long-term social networking company Facebook from several potential competitions. For example, Microsoft’s acquisition of Skype for over $8.5 billion was in regard to distort Google from buying the Internet communication company. The latest acquisition with a price tag of $1.056 billion dollars in cash will also help both tech giants to fight Google and others. The 800 patents cover browser and website technology.
In a similar move, Facebook’s founder Mark Zuckerberg has made the best decision as CEO of the world’s largest social networking company. The young CEO is willing to spend $1 billion and bought Instagram. As one of the potential Facebook’s killer, the startup company provides services for photo sharing thru mobile app and very popular among Facebook and Twitter users. Instagram has compiled a list of over 30 million users, mostly using Apple iOS devices, while last week the company also launched mobile app for Google Android users. Since the launch of Android app, the company is now registering about one million users per day.
(Image: left, AOL logo; right, Instagram logo)