Microsoft says it’s investing $1 billion in MLM business
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The software giant Microsoft has signed a deal to acquire the online business business of online marketing giant MLM company MySpace.
The deal, expected to close in the third quarter, will allow Microsoft to expand its MLM reach and invest in new markets, such as the US, according to a company release.
The acquisition includes MySpace, which has grown rapidly since it launched in 2004 and has over 4 million active users.
It will add the software company’s US-based headquarters in Redmond, Washington, and will create a global network of about 100,000 MLM companies, the company said.
It said the deal will give Microsoft a new revenue stream for the software giant, which is the world’s largest software company, with a market cap of $52.5bn.
In a statement, MySpace said the acquisition “will enable us to further leverage our strengths in software development and engineering to build the fastest growing platform for the creation of customized and innovative content and services”.
The MySpace company said it plans to continue expanding and creating new businesses.
It added: “With this acquisition, we will become a global leader in the monetisation of online communities, including the most popular MLM platforms, and we will leverage the combined strength of our team to drive our growth.”
The Myspace acquisition comes a week after Microsoft announced it was acquiring mobile-first software company Nextdoor for $5.5 billion.
Microsoft said the new deal with MySpace would allow the company to expand into the US market and grow its MLMs in other markets.”MLM provides a new way for consumers and businesses to monetise their online presence and increase revenue through branded content and social engagement,” MySpace CEO Ryan Hodge said in a statement.
“As we expand our network of online services, we look forward to building a strong community and giving our customers and customers’ brands a greater chance to grow.”
The company added that it plans on expanding its business further and said it would work with the MySpace management team to further strengthen its MLMS.
“We will be able to scale our MLM to meet the demands of our rapidly growing customers and grow our MLMs across the globe,” it said.
Microsoft’s deal with Nextdoor comes amid a global trend towards more and more MLM businesses, including in the US.
In April, the US Securities and Exchange Commission fined Microsoft and Google $2.7 billion and fined them $3.2 billion over allegations they used a botnet to steal users’ identities.
“As we continue to expand our global MLM network, we continue our commitment to protect our customers’ information and ensure our MLMS systems are secure and reliable,” a Microsoft spokesperson said.
“Our MLM networks are managed and operated by third-party providers, and they are subject to rigorous security and compliance controls.
We also operate a separate compliance program that includes rigorous security audits and internal oversight.”
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The software giant Microsoft has signed a deal to acquire the online business business of online marketing giant MLM company…
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