Tech Web is announcing that Microsoft will go head-to-head with MySpace in the coming months. Microsoft invested in "Whallop" led by serial entrepreneur Karl Jacob.

In a joint release with Microsoft, Wallop was scarce on details of how it expects to differentiate itself in a crowded market, other than saying it has tapped Frog Design Inc. "to conceive a next-generation user interface enabling people to express themselves like never before." Wallop officials were not immediately available for comment.

In spite of the misgivings re the crowded marketspace, Microsoft is making a strong strategic move with this investment. This move is all about reaching people where they are rather than where media wants them to be. Social networks have the potential to become the new information commons and Microsoft wants to be part of the landscape.