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  WebEx Plunges Over Microsoft Competition Worries
Time: 00:00 EST/05:00 GMT | News Source: SmartMoney.com | Posted By: Todd Richardson

Shares of WebEx Communications Inc. fell sharply Wednesday after Microsoft Corp. unveiled plans to jump into the Web-conferencing business. Late Tuesday, Microsoft said it had agreed to buy privately held PlaceWare Inc., a Web-based conferencing software company. Terms weren't disclosed.

The prospect of Microsoft getting into any new business is cause for concern for entrenched industry players. The purchase of PlaceWare has raised the specter that Microsoft will gradually devour market share in the Web-conferencing arena, leaving little business for WebEx, and players like Raindance Communications Inc. and Centra Software Inc.

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