Showing posts with label Forge New Relationship. Show all posts
Showing posts with label Forge New Relationship. Show all posts

Thursday, 5 July 2012

Facebook (FB), GM Trying to Forge New Relationship

After a high-profile split with GM, Facebook is negotiating again with the auto maker and is trying to prove that its ads do work. GM has not yet committed to a return.

New York, July 5 ( - Facebook (NASDAQ: FB) and General Motors Co (NYSE: GM) are back on the negotiating table after their high-profile falling out two months ago.

Facebook is trying to bring back GM to its fold as a paid advertiser. In May, the social networking company was dealt a big blow by GM when the auto maker said that paid ads on the social networking site had little impact on consumers’ car purchases. Just days before Facebook’s initial public offering, GM had stopped placing ads there. 

A reapprochement is now being worked out as the two sides are now holding discussions. Facebook, on its part, has shown its willingness to provide GM with better data on how their ads can turn into dollars in the same way as it does with other advertisers. However, it said that it will not provide any special treatment to GM.

Although, Facebook is trying to prove its usefulness to large companies such as GM, the auto maker has not yet committed to a return, saying that it will only consider engaging again if Facebook can better improve its effectiveness.

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