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Microsoft Holders Say Ballmer's Web Spending Masks Idea Drought

Time: 01:37 EST/06:37 GMT | News Source: Bloomberg | Posted By: Kenneth van Surksum

Microsoft Corp. Chief Executive Officer Steve Ballmer says he plans to spend hundreds of millions of dollars to fix the company's unprofitable Internet business. His investors say they want proof he knows what to do with the money.

After walking away from six months of on-again, off-again talks about buying all or part of Yahoo! Inc., owner of the No. 2 Web search engine, Ballmer has left shareholders wondering if he has a plan B.

Microsoft, the biggest software maker, has lost about $90 billion in market value this year as Ballmer vacillated on Yahoo and failed to show how he would crack Google Inc.'s dominance of Internet advertising. Shareholders will look for ideas at a meeting with Ballmer tomorrow, said Kim Caughey, a Fort Pitt Capital Group Inc. analyst in Pittsburgh.

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