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Microsoft Seen Focused on Small-Scale Acquisitions

Time: 01:18 EST/06:18 GMT | News Source: Reuters | Posted By: Robert Stein

SEATTLE (Reuters) - A recent software industry merger may have whetted Microsoft Corp.'s MSFT.O appetite for a deal of its own, but analysts said on Tuesday that the software giant was likely to limit itself to snapping up little companies with new technologies. International Business Machines Corp. IBM.N said last week that it would acquire Rational Software Corp. RATL.O for $2.1 billion, fueling speculation that rival Microsoft might look for a software tool company of its own within the growing market for application development software.

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