Sat05252013

Last update02:06:21 PM GMT

2005

Microsoft Looks Beyond AOL

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AOL deal loss is not the end of the search affair says the Redmond Vole!

Time Warner has chosen Google as the most suitable partner for its America Online Internet unit--but the game isn't over for jilted suitor Microsoft.

Microsoft plans to leverage its desktop market dominance to compete with Google on search and advertising, analysts said - despite losing out to Google in the race to become the partner for Time Warner's AOL unit.

After spending much of this year wooing AOL in an attempt to get its search business, the Redmond, Washington, software giant was pipped at the post by Google. Google and AOL announced that Google will invest $1bn for a five per cent stake in AOL under a broad partnership that expands their existing search engine deal to include collaboration on advertising, instant messaging and video.

Microsoft and Google End Legal Fight Over Employee

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Microsoft and Google reached an agreement to settle the dispute on Google's employment of Mircrosoft's former employee Lee Kai-Fu.

Microsoft sued Google, claiming it had violated non-competition agreements after it poached Lee, who was the head of its research operation in China.

Google counter-sued saying that it had done nothing wrong and that Microsoft was using the legal system to act unfairly.

Microsoft to Start Testing New Messenger

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Microsoft has started limited testing of Windows Live Messenger, an update that expands the consumer instant messaging software into areas such as Internet phone calling.

Various enthusiast sites, including Mess.be and BetaNews, reported that a private beta of Live Messenger is imminent, while another fan site, Messenger Blog, offered purported screenshots of the new software. Microsoft initially declined to comment, but the company had promised a beta version would come shortly.

Microsoft May Share Search Revenue

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Search engine users could get a cut of the online action, Gates suggests.
In an effort to draw business away from Google, Microsoft announced plans to share some of its online advertising revenue with consumers who use its Internet search engine.

Gates said that search engines like Google get their revenues from advertising because people use these search engines.

Microsoft, MCI Plan PC-To-Phone Service

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Microsoft Corp.'s MSN and MCI Inc. said they are teaming up to extend the reach of MSN's instant-messaging service into the crowded global computer-to-phone call market.

The companies are the latest to enter the market for calling using personal computers. Those in the market include Skype, recently purchased by eBay, along with Google and Yahoo.

But the service will permit only outbound calls at first, even as rivals Yahoo Inc. and America Online Inc. allow instant messaging users to receive calls from conventional phones as well as to call out.