I'm taking in Danny Sullivan's keynote at SMX West right now.
He's talking about social search and the as-yet-unrealized potential of communities like Facebook to influence search results in deep ways.
Although this will raise privacy issues, it underscores the value of Facebook right now. It's leveled off slightly, maybe, but it hasn't backed off by much. MySpace, on the other hand, seems increasingly like the trailer park of social media.
That means someone's going to want a deeper partnership with Facebook, if not outright acquisition.
The only major search company that has a piece of Facebook, of course, is Microsoft.
To achieve big goals like increasing its stake in Facebook and incorporating data into a better overall experience, Microsoft needs to get other ducks in a row first, including consolidating forces with Yahoo. Hence, the resolve they are showing to push the acquisition through no matter what Yahoo wants. For the record, Danny wound up his keynote by expressing a hope that Yahoo can remain independent.
Posted by Andrew Goodman
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