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  Microsoft Explores Web Searching
Time: 19:10 EST/00:10 GMT | News Source: PC World | Posted By: Todd Richardson

Microsoft is significantly increasing its investment in the Internet search business, tripling its search team and preparing its own paid listings platform, according to a report from industry analysts. What the analysts call a "strategic shift" at Microsoft includes an expansion of the search team from fewer than 70 people to about 200. The move is backed strongly by senior management, including the chief executive officer of the company, Steve Ballmer, say analysts with U.S. investment bank SoundView Technology Group.

The analysts said that after an extensive investigation with sources inside and outside Microsoft, they can "confirm definitely" that Microsoft is setting its sights on search. Ballmer discussed search strategy last week, and the search plans were also highlighted in a company memo, according to the analysts. The analysts believe that as part of the new strategy, Microsoft will develop its own paid listings platform. This would be devastating for Overture Services, which now handles paid listings for Microsoft. A third of Overture's revenue in last year's fourth quarter came from Microsoft, according to the SoundView analysts.

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