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Microsoft aims at Google
No. 1 software company expected to release its long-awaited Web search service Thursday.
November 10, 2004: 6:31 AM EST
SEATTLE (Reuters) - Microsoft Corp. will launch its long-promised Internet search engine Thursday, competing directly with market leader Google Inc., sources close to the company said.
The world's largest software maker had promised to enter the search market with its own technology by the end of the year, as it seeks to attract more users to boost advertising revenue for its MSN Internet division.
Earlier Tuesday, Microsoft chief executive Steve Ballmer told shareholders at the company's annual meeting Microsoft would beat Google's technology and double its advertising revenue in the next five years.
"We will catch up, we will surpass," Ballmer said.
The company had no official comment on its plans for the new MSN Search service, which has been operating on a trial basis at search.msn.com since the summer.
Microsoft, which has been relying on Yahoo! Inc. (Research) unit Inktomi to power its search services, decided to enter the search game after Google took the lead and turned itself into a multi-billion dollar company.
Google (Research) shares shed 2 percent, or $3.35, to $165.35 in after-hours trading following release of the news. Yahoo's (Research) stock also fell, slipping 35 cents to $36.68 in extended trade. Microsoft (Research) shares were little changed in after-hours trading, standing at $29.80 from their Nasdaq close of $29.77.
Small, but growing
Search still remains a small part of Microsoft's business, however, with the MSN Internet division posting revenue of $360 million compared to total company profits of $36.8 billion in the latest fiscal year.
The MSN unit, however, recently reached profitability on an operating basis thanks to increased Web-based advertising.
Google recently reported that revenue in its latest quarter doubled to $806 million from a year earlier.
Google makes its money by displaying text-based advertising alongside its search results, which has turned into a lucrative segment of the online advertising market.
Microsoft, Google and Yahoo are also going head-to-head to provide localized information by searching for nearby businesses and services based on geography.
Beyond the looming rivalry over online search services, local hard drive search and customized search are considered the next frontiers in search technology.
cnn
No. 1 software company expected to release its long-awaited Web search service Thursday.
November 10, 2004: 6:31 AM EST
SEATTLE (Reuters) - Microsoft Corp. will launch its long-promised Internet search engine Thursday, competing directly with market leader Google Inc., sources close to the company said.
The world's largest software maker had promised to enter the search market with its own technology by the end of the year, as it seeks to attract more users to boost advertising revenue for its MSN Internet division.
Earlier Tuesday, Microsoft chief executive Steve Ballmer told shareholders at the company's annual meeting Microsoft would beat Google's technology and double its advertising revenue in the next five years.
"We will catch up, we will surpass," Ballmer said.
The company had no official comment on its plans for the new MSN Search service, which has been operating on a trial basis at search.msn.com since the summer.
Microsoft, which has been relying on Yahoo! Inc. (Research) unit Inktomi to power its search services, decided to enter the search game after Google took the lead and turned itself into a multi-billion dollar company.
Google (Research) shares shed 2 percent, or $3.35, to $165.35 in after-hours trading following release of the news. Yahoo's (Research) stock also fell, slipping 35 cents to $36.68 in extended trade. Microsoft (Research) shares were little changed in after-hours trading, standing at $29.80 from their Nasdaq close of $29.77.
Small, but growing
Search still remains a small part of Microsoft's business, however, with the MSN Internet division posting revenue of $360 million compared to total company profits of $36.8 billion in the latest fiscal year.
The MSN unit, however, recently reached profitability on an operating basis thanks to increased Web-based advertising.
Google recently reported that revenue in its latest quarter doubled to $806 million from a year earlier.
Google makes its money by displaying text-based advertising alongside its search results, which has turned into a lucrative segment of the online advertising market.
Microsoft, Google and Yahoo are also going head-to-head to provide localized information by searching for nearby businesses and services based on geography.
Beyond the looming rivalry over online search services, local hard drive search and customized search are considered the next frontiers in search technology.
cnn
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