Microsoft Isn’t Giving Up on Internet Search Ads
By Raoul Railey
20:06, June 22nd 2008
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Microsoft Isn’t Giving Up on Internet Search Ads

Steve Ballmer, Microsoft’s CEO, made clear the company’s intentions of getting an as larger as possible market share on internet search related ads.

Microsoft tried to take the big step earlier this year when it sent an unsolicited bid to Yahoo, offering more than $40 billion to acquire the company. Yahoo refused Microsoft’s first offer and the Redmond-based company upped it to $47.5 billion, but still didn’t convince Yahoo’s board of directors to accept the deal.

Following these events, Microsoft declared that it won’t make Yahoo any more takeover offers, and that it will be trying to find new ways to enhance its income resulting from internet advertising. Microsoft’s new acquisitions of companies that were smaller but more focused on certain niches of the market have made specialists think that this is the software giant’s strategy for compensating for the failure of the Yahoo deal.

However, Mr. Ballmer recently said that all these acquisitions are seen by the company just as ways to make its presence felt in all the types of internet advertising, but that the search related market remains the one were most of the money come from, and where Microsoft’s interests really are.

Microsoft has recently made a new offer to Yahoo to purchase 16% of the company and take over its search business for $9 billion.

Studies show that unless Microsoft or another company manages to get a greater market share, Google’s internet search advertising incomes will become larger than the ones Microsoft has from its most profitable business, Windows, and that this is bound to happen no later than March 2009.



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