Farecast Has Been Acquired by Microsoft

By Steven Finch on Friday, April 18, 2008

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It has been reported this morning that Farecast has been acquired by Microsoft for $115 million. Farecast is a travel prediction engine which attempts to help you find the most ideal time to purchase tickets.

This is a good return for investors into Farecast, because they received approx 5 times their investment.

Microsoft has already openly stated that they will integrate the Farecast technology into MSN Travel. Farecast had a very good technology and im sure there must have been more companies interested in Farecast, because I cant see that Microsoft would pay $115 million just to put the technology into their travel section. Must have been a strategic move to keep the technology out of reach of their competitors.

Google Changing the PageRank Algorithm?

By Steven Finch on Wednesday, October 24, 2007

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It is huge news today around the blogosphere that Google PageRanks of large sites have been hurt. DailyBlogTips had some of the first info on the topic and most of the key information was from Andy Beard. Sites penalised are as follows:

Here is a list that I gathered with big blogs that supposedly lost PR on this issue:

Update: It looks like mainstream websites that were selling links were also penalized:

Andy Beard thought the drop was because of text selling which was reported about a week or so ago. This turns out not to be the case.

Duncan Riley over at Techcrunch has reported that Google didnt drop the page ranks because of the selling of text links, but because of link farms. Links farms are where each site in the network provides hundreds of outgoing links on each page of the blog to other blogs in the network, in some cases creating tens, even hundred of thousands of cross links.

This all comes a week after the linking characteristics of Techcrunch was analysed. Where it was reported that 1/3 of all Techcrunch outgoing links where to related Techcrunch sites. Hence, link farms do explain why the Techcrunch page rank hasnt changed, but the Crunchbase ranking is now at 0.

These changes will affect a lot of blog networks that survive on text link ads and related sales that depend on strong Google page ranks. A drop from a PR7 to PR4 should really affect traffic too heavily but it will make the tough job of selling ads much tougher. In the coming months and years I think we will see a lot of small blog networks starting to struggle and trying to find another way to survive.

About 4 months ago now I saw a decrease from a PR4 to a PR1 and I found it difficult to work out why, and about a month ago when Google announced that selling text link ads would bring in a punishment, I finally found out why.