What The Microsoft-Facebook Deal Means For Real Estate — Part 2: Revisiting Move.com Vs. ActiveRain

October 26, 2007

Yesterday I, among many others, commented on the Microsoft-Facebook deal — though in my case, I’m more interested in the potential impact on real estate than I am in the specifics of the deal itself.  While yesterday’s post thought through the implications for real estate consumers in the mid-Peninsula, today I have some thoughts on the implications for real estate professionals, and in particular the ongoing legal brouhaha between Move.com and Active Rain.

A quick recap:  Move.com, the 800-lb gorilla of the online real estate world, was apparently in negotiations to buy ActiveRain, the 50,000-member strong real estate blogging site.  The price tag was rumored to be around $30M.  ActiveRain is now suing Move.com for allegedly reneging on the deal.

The $30M price tag certainly raised eye brows.  The BawldGuy himself wondered aloud in a comment on my first article on the issue whether ActiveRain was even worth $1M.  My back of the envelope calculation — based on the fact that Facebook was roughly valued at $250/user – suggested an argument for a $12.5M valuation for ActiveRain.  Yesterday’s news upped the ante for Facebook to around $300/user, implying ActiveRain may have a value of $15M.

Back to Microsoft-Facebook for a minute.  What does Microsoft see in Facebook?  Simple — it has the potential to become a finely honed online advertising machine, in which Microsoft can target users’ interest with pinpoint precision — not (as is currently the case with search engines) simply by what the user is searching for, but rather by what the users’ interests, group memberships, and friends’ list implies about his or her interests.  You’re a member of the groups “San Francisco” and “Wine afficionados?”  Perfect — we’ll serve you up with an ad for a weekend getaway in Napa.

What does (or did) Move.com see in ActiveRain?  Perhaps one of (at least) two things:

1) Yet another venue to rape pillage plunder charge agents for the Web 2.0 equivalent of “Enhanced Listings.”  Want to have a blog?  That’s free.  Oh, you want to actually be able to write something in your blog and have pictures, links, and comments?  That’ll be $4.95/month.  Want to get rid of competing agents’ ads next to your blog articles?  Another $4.95/month, please.  Want to “enhance” your blog so it shows up higher in a search on Active Rain?  $9.95.

2) A finely honed online advertising machine, a la Facebook, but specifically within the real estate industry.  Again, ads could be tailored according to the users’ group memberships and friend lists.  You’re a Coldwell Banker agent, and a member of the “Boise interest group”?  We’ll serve you up an ad from a competing Prudential franchise in Boise that’s looking to expand.  You’re reading an article comparing some of the different MLS search providers?  Bingo!  We’ll show you an ad advertising such wares, along with a one month free coupon.

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Written by Kevin · Filed Under Active Rain, Facebook, Industry, Microsoft, Move.com 

Comments

9 Responses to “What The Microsoft-Facebook Deal Means For Real Estate — Part 2: Revisiting Move.com Vs. ActiveRain”

  1. Ghillie Suits » What The Microsoft-Facebook Deal Means For Real Estate — Part 2: Revisiting Move.com Vs. ActiveRain on October 26th, 2007 9:17 am

    [...] Check it out! While looking through the blogosphere we stumbled on an interesting post today.Here’s a quick excerptYesterday I, among many others , commented on the Microsoft-Facebook deal though in my case, I m more interested in the potential impact on real estate than I am in the specifics of the deal itself.  While yesterday s post thought through the implications for real estate consumers in the mid… a value of $15M. Back to Microsoft-Facebook for a minute.  What does Microsoft see in Facebook?  Simple it has the potential to become a finely honed online advertising machine, in which Microsoft [...]

  2. The Odysseus Medal competition — Voting for the People’s Choice Award is open | BloodhoundBlog: Real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments on October 28th, 2007 8:44 pm

    [...] HealingMichael Wurzer — Living history, Living HistoryKevin Boer — Move/Active Rain, What The Microsoft-Facebook Deal Means For Real Estate — Part 2: Revisiting Move.com Vs. ActiveRai…Brian Boreo — Real estate weblogging, Waking from my blog reverieGary Elwood — [...]

  3. Arizona Mortgage Guru » 65th Carnival of Real Estate - Boo! on October 29th, 2007 9:26 am

    [...] 1: Kevin Boer take the top honors this week with his post What The Microsoft-Facebook Deal Means For Real Estate — Part 2: Revisiting Move.com Vs. ActiveRai…, this is posted at Three Oceans Real [...]

  4. This Week’s Carnival of Real Estate on October 29th, 2007 9:49 am

    [...] I’m honored to have been the top pick this week with my article on, as Shailesh puts it, the “scary” amount of money Active Rain could have made in their failed acquisition by …. [...]

  5. Carnival of Real Estate #65 - Zillow Blog - Real Estate News and Analysis on October 29th, 2007 10:19 am

    [...] top winners, with the grand prize going to Kevin Boer of 3 Oceans Real Estate who drilled into the brouhaha between Move.com and ActiveRain. There was also a Halloween twist as Shailesh offered up “Scary” category with the prize going [...]

  6. Monday Kudos at The Phoenix Real Estate Guy on October 29th, 2007 12:00 pm

    [...] Shailesh, The Arizona Morttgage Guru, hosted the 65th edition of the Carnival of Real Estate. Check his winners and honorable mentions here. Kevin Boer takes the top spot with his outstanding post, “What The Microsoft-Facebook Deal Means For Real Estate — Part 2: Revisiting Move.com Vs. ActiveRai….” [...]

  7. Charleston Real Estate Blog : Winners at the Carnival of Real Estate October 29 on October 29th, 2007 12:38 pm

    [...] some great writing by clicking here.Top honors go to Kevin Boer who wrote a most interesting post, What the Microsoft - Facebook Deal Means for Real Estate - Part 2: Revisiting Move.com vs ActiveRain.  Published Monday, October 29, 2007 3:22 PM by Howard Arnoff Filed under: Real Estate, [...]

  8. Trulia Blog » Carnival of Real Estate on October 29th, 2007 1:02 pm

    [...] ‘What The Microsoft-Facebook Deal Means For Real Estate - Party 2: Revisiting Move.com Vs. Act… by Kevin Boer of 3 Oceans Real Estate [...]

  9. Paul Francis on February 18th, 2008 2:16 am

    Beautiful analysis of the Move.com intentions concerning AR. I think if the deal would have gone through, you would have seen a massive exit of the really good bloggers on AR to focus on their own blogs or they would move to another platform. (There is no shortage of negative articles concerning Move.com on AR)

    As I’ve noticed, AR has been a really good gateweay for agents to get introduced to blogging and to learn. Luckily for real estate agents, real estate blogging is something that the big beast was too slow to get involved in.

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