Investors were rejoicing yesterday over Facebook Inc (NASDAQ:FB)‘s new Home suite of apps and integrated features, sending shares up 3% after the announcement on the prospects of increased user engagement and eventually incremental ad revenue once ads are deployed.
Home integrates directly into select Google Inc (NASDAQ:GOOG) Android devices and will undermine some of the search giant’s own services, even if they’re still technically available. Even though Home will step on some of Big G’s toes, the search giant maintained niceties following the event, saying Home is another example of continued innovation on the Android platform.
Oddly enough, another company wasn’t too impressed and is trying to downplay the significance of Home: Facebook search partner and investor Microsoft Corporation (NASDAQ:MSFT).
On Microsoft Corporation (NASDAQ:MSFT)‘s official blog, corporate communications exec Frank Shaw noted that Facebook’s announcement bore an uncanny resemblance to the software giant’s own Windows Phone pitch from 2011. Facebook Inc (NASDAQ:FB) positioned Home as a way to put people in front of apps, as opposed to the other way around.
That’s an approach that Microsoft Corporation (NASDAQ:MSFT) has been touting for years, since Windows Phone features a People Hub that is integrated directly with Facebook, LinkedIn Corp (NYSE:LNKD), and Twitter. Shaw takes the opportunity to knock Android, saying the platform is already “complicated enough” (emphasis his) and that it has “sadly” always lacked a “People First” approach.
In that sense, Shaw understands why Facebook wants to launch Home, but also suggests that users looking for a “people-centric” phone just opt for the “real thing” and pick up a Windows Phone.
The move is curious considering that Facebook is ultimately much closer with Microsoft Corporation (NASDAQ:MSFT) than it is with Google Inc (NASDAQ:GOOG). Bing powers the search bar located on Facebook’s site, and is also the driving force behind the social network’s new Graph Search function.
Microsoft Corporation (NASDAQ:MSFT) was also an early investor in Facebook Inc (NASDAQ:FB), buying in for $240 million as early as 2007. Microsoft Corporation (NASDAQ:MSFT) did unload 6.6 million Class B shares during Facebook’s IPO last year, leaving it with 26.2 million shares and a 1.7% stake.
Why would Microsoft want to rain on its partner’s parade?
The article Microsoft Tries to Burn Down Facebook’s Home originally appeared on Fool.com and is written by Evan Niu, CFA.
Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends Facebook, Google, and LinkedIn. The Motley Fool owns shares of Facebook, Google, LinkedIn, and Microsoft.
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