[AI] Microsoft to go its own way after Yahoo deal collapse:

renuka warriar erenuka at gmail.com
Sat May 10 08:35:40 EDT 2008

The Hindu News Update Service
News Update Service
Saturday, May 10, 2008 : 0145 Hrs       

Microsoft to go its own way after Yahoo deal collapse: Gates 

Jakarta (AP): Microsoft Corp will focus on growing its own advertising and Internet search business after it withdrew its takeover offer for Yahoo Inc,
Chairman Bill Gates said on Friday. 

Microsoft has not presented an alternative strategy to compete with its dominant rival in the Internet business, Google Inc, since withdrawing a USD 47.5
billion bid for Yahoo Inc last weekend. 

Analysts have been left wondering how the world's largest software maker will increase its share of that multibillion dollar market without a major tie-up.

"We have always felt we could do very well on our own and now that's the path we are focused on," Gates said in an interview with The Associated Press in
Jakarta today. 

"The standard strategy for us is to just hire great engineers and surprise people at how well we can compete, even with a company that's got a strong lead,"
he said. 

Gates says Microsoft remained open to making acquisitions, but declined to comment on possible candidates, such as networking sites like Facebook in which
Microsoft already holds a 1.6 per cent stake. 

Microsoft has developed its own search-ad platform and bought aQuantive, an Internet advertising company, for USD 6 billion, but its US online operations
are loss-making. 

It has captured just 10 per cent of US Internet searches, compared to Google's 58 per cent and Yahoo's 22 per cent. 

Gates also said that Bill and Melinda Gates Foundation has donated USD 3 million for emergency relief efforts in Myanmar and will provide software to help
reunite family members separated in the cyclone. 


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