Abstract
In this essay, we will try to find out why Microsoft bought the social website Facebook, spending $240 million. First, by defining and over viewing the current activities of Microsoft, this linked diversification can seem to be strategic nonsense and we can think that it would hardly fit into the current business portfolio. But looking at the new perspectives in the market, we can soon come to understand the strategy Microsoft is implementing, and which will achieve positive outcomes to the firm. On top of that, the competition from emerging companies can be a driving force, critical when taking into account this acquisition. At the end, we will see that the market and the environment in which Microsoft is playing in changing forcing the key players to implement innovative and challenging business models.
