Saturday, May 13, 2006

Microsoft investors grumbling about search war

Dina Bass at Bloomberg News reports that:
Microsoft Corp. Chief Executive Steve Ballmer is getting an earful from investors ...

Ballmer is spending in areas to help compete against Google ... Microsoft said last month that it would spend $2 billion more than analysts expected on new projects in its next fiscal year, triggering an 11 percent one-day drop in shares ...

Analysts worry that Ballmer is trying to build a Google within Microsoft. Investors are concerned that they may never see the payoff.
See also my earlier post, "Microsoft is building a Google cluster".

[Found on Findory]

1 comment:

Razib Ahmed said...

The funny thing with Microsoft is that it always becomes busy with something that is gone. We saw the same thing about Internet 10 years ago as Microsoft did not take Internet seriously that time and then in the last 5 years Microsoft failed to realize the potential of free searching. The next battle is going to be fought over providing internet content and Yahoo is realized the potential very well.
Jerry Yang and his top management recently came to India and have started
the process of having a stronger presence in India as they believe that within
the next 5 years, India is going to be among the
top 3 internet
markets.