Microsoft targets Web with Yahoo or alone
CNet News reported that Microsoft plans to invest heavily in Web search to compete against Google, even if it fails to acquire Yahoo.
"We can afford to make big investments in the engineering and marketing that needs to get done. We will do that with or without Yahoo," said BIll Gates. "But we also see that we'd get there faster if the great engineering work that Yahoo has done and the great engineers there were part of the common effort."
According to Gates Google is the only company with "critical mass" in Web search.
Yet, Microsoft needs a bigger piece of the market to create a more
competitive and profitable Web search business.
The two companies are at a stand-off in Microsoft's unsolicited bid to acquire Yahoo.
Microsoft has offered to buy Yahoo for $31 a share in cash and stock, a
bid which Yahoo's board rejected, saying it undervalued the company.
Microsoft's stock has fallen 13 percent since its offer for Yahoo,
reducing Microsoft's offer price to $29. Yahoo shares closed at $29.66
on the Nasdaq on Friday, indicating that investors expect Microsoft to
raise its bid.
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