Search Engine Optimization News Blog

In an effort to combat with Google Microsoft continues to look for new ways to gather allies. After Microsoft failed dismally in its attempt to buy Yahoo, it has turned its eye on Greenfield Online Inc. The price negotiation that was underway is frozen now at $486 million. Micrpsoft plans to add websites that will help customers to search for product reviews and compare prices.All Greenfield Online Inc. shareholders will be given $17.50 as per Microsoft’s statement. Greenfield maintains the CIAO shopping sites of Europe. Greenfield was already in negotiation with Quadrangle Group that was willing to give $15.50 per share and this agreement ended this week. More services will be added to help consumers to find products on the internet easily and the software that will be deployed is claimed to be more efficient than Google’s tool. If at all Microsoft is to make any money from Greenfield deal, it has to concentrate on search advertising that is based on transactional searches. Microsoft will be able to make only if it enhances the quality of those search results.

The price offered by Microsoft is just 1.4% higher than Greenfield’s price at the closing yesterday. However in the last three months the value increased drastically in the last three months; there was an increase of 32% over a period of 3 months. Microsoft’s shares did not see such a positive trend this year and it is unlikely that it will rise any time in the near future

Probably Microsoft might not have been interested in Greenfield, if it were to be successful in acquiring. Moreover, their internet business model did not prove to be a very successful model and it was not so very successful in matching its competitors Google and Yahoo. Microsoft had to give cash to people who used MSN to shop online. With this new deal Microsoft is hoping that things will change. CIAOs features will be incorporated with Microsoft’s Live Search.

Microsoft is looking for ways to boost its unprofitable Internet business after failing to buy Yahoo! Inc. this year. In May, Microsoft started giving cash to people who use its search engine to shop online. Ciao’s features will become part of Microsoft’s Live Search program. This deal will be fully realized in the fourth quarter as per Microsoft’s statement. CIAOs monthly visitor traffic is 26.5 million unique hits. The visitors come from seven countries; with this new deal Microsoft might like to expand its territory and concentrate on more countries.

To get anywhere closer to Google, Microsoft should spend $1.2 billion on research and development and this does not include the marketing costs. Greenfield Online Inc. also has an Internet survey business which Microsoft has agreed to sell to some financial buyer whose name is not published. However, Microsoft can go ahead with the acquisition irrespective of the status of the Internet Survey Business.

It should not become the Microsoft’s version of Google – YouTube deal where Google is yet to see some decent profits out of YouTube.