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Ed. Note: In addition to the regular startup/product reviews, I’ll be covering more news/acquisitions/trends stories for the next couple of weeks. Depending on how that works out, I’ll either stick or go back to writing single-handedly about products and services. If you have an opinion or a suggestion on what you’d like to see, I’d love to hear it.

In a brief blog post, CEO Hugh Crean confirmed today in a brief blog post that FareCast, a travel airfare search/prediction service we covered briefly on Rev2 in 2006, has been acquired by Microsoft. SeattlePI, which broke the rumor last week, later confirmed the price tag to be around $115 million.

Given the partnership with MSN Travel, the acquisition most likely seemed fit for Microsoft to expand their presence in the market. The company has raised around $32 million in funding to date, and SeattlePI reports that multiple offers were most likely considered before a decision to go with Microsoft was made.

CEO Hugh Crean stated in the short blog post, “We’re excited to confirm that Farecast has been acquired by Microsoft! This acquisition creates tremendous opportunities for the Farecast team and our customers.  We look forward to sharing more details in the weeks to come.  On behalf of the Farecast team, thank you.

The acquisition is undoubtedly a part of Microsoft’s stategy Steve Ballmer unveiled at the last Web 2.0 conference to acquire 20 companies a year. The hefty price tag most likely comes from its investment dollars than real value — while undoubtedly a useful service, you’d have to be a little insane to think the service is around $115 million. In any case, congrats to the folks at FareCast for getting the deal done.

Written by | dave

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6 Comments

  1. elliottng

    April 22, 2008 at 1:35 pm

    Interesting point about Steveb pledge to purchase 20 companies a year. I can guarantee you that more of them will be related to search. People think about Farecast as a “travel” play but we think about it as a “search” play because there are few verticals that are bigger than travel in the general search querystream at the big horizontal engines. So Live.com integration is clearly where this is going. We posted about it here:
    http://www.uptake.com/blog/travel_industry/fare
    We also think search advertising is part of the reason why Microsoft paid $115 mm for this deal.

  2. elliottng

    April 22, 2008 at 4:35 pm

    Interesting point about Steveb pledge to purchase 20 companies a year. I can guarantee you that more of them will be related to search. People think about Farecast as a “travel” play but we think about it as a “search” play because there are few verticals that are bigger than travel in the general search querystream at the big horizontal engines. So Live.com integration is clearly where this is going. We posted about it here:
    http://www.uptake.com/blog/travel_industry/fare
    We also think search advertising is part of the reason why Microsoft paid $115 mm for this deal.

  3. Pingback: Farecast–is Microsoft getting into travel…or into contextual targeting? - Travel Industry News - UpTake Blog

  4. Monster

    April 6, 2009 at 2:30 am

    If Microsoft acquires travel search service for FareCast for $115m then undoubtedly this is a quite a big money, huh? In relation to Microsoft issues, did you here about the Monster and Microsoft team-up? The Monster and Microsoft are joining forces in order to assist people looking for work that doesn't include nametags and worrying about payday loans, by allowing Microsoft resume building applications onto the Monster website and network. This site is also geared as a resource for soon to be or recent college graduates looking to get their first job. And so, if you're looking for work, landing an engagement through might mean never needing payday loans again. So for those graduates and people who just got lay-off this might be a good hope for us. So grab the opportunity in order survive in this time of recession.

  5. Monster

    April 6, 2009 at 7:30 am

    If Microsoft acquires travel search service for FareCast for $115m then undoubtedly this is a quite a big money, huh? In relation to Microsoft issues, did you here about the Monster and Microsoft team-up? The Monster and Microsoft are joining forces in order to assist people looking for work that doesn't include nametags and worrying about payday loans, by allowing Microsoft resume building applications onto the Monster website and network. This site is also geared as a resource for soon to be or recent college graduates looking to get their first job. And so, if you're looking for work, landing an engagement through might mean never needing payday loans again. So for those graduates and people who just got lay-off this might be a good hope for us. So grab the opportunity in order survive in this time of recession.

  6. DeboraBrod

    January 27, 2010 at 11:04 am

    This is as amazing as Hawaiian Volcano Cruise, I'm telling you. Who wouldn't like to go on a cruise to Hawaii to see the active volcanoes? I'd say that if this opportunity is available people shouldn't wait, should act right away.

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