Wednesday, November 10, 2004

Microsoft to introduce new search engine

The New York Times reports that Microsoft will introduce its new search engine tomorrow (Nov. 17th.) This is a long awaited competitor to Yahoo! and Google.

The Wall Street Journal reports that according to a Yahoo! spokeswoman, Overture's (a subsidiary of Yahoo!) contract to provide sponsored search ads is unaffected by this search preview. Undoubtedly that will change eventually. Even if Microsoft captures more search business, they will still be sharing the revenue with Yahoo! as long as Overture continues to be the ad provider. Microsoft will have to sell its own ads to get a return on the investment its making in improving its search engine.

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