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Microsoft Denies Developing Its Own Paid-Search Service

Overture Services and Microsoft denied an analyst's report on Wednesday that said Microsoft would develop its own paid-search service that would put its relationship with Overture in jeopardy. In a research note, SoundView Technology Group's Jordan Rohan cited an internal memo and remarks Steve Ballmer made last week as evidence that Microsoft, whose MSN service provides about one third of Overture's revenue, would develop its own paid-search platform. "Overture may attempt to deny the gravity of the evidence," Rohan noted, "yet we believe the implications are clear." Microsoft, however, dismissed the report as uninformed. "Microsoft and MSN are completely committed to our relationship with Overture," said Bob Visse, director of marketing for MSN. "We have no intention of developing our own paid-search platform." Visse said the company continued to invest in search, but apart from the paid-listings area. [Full story: Microsoft Denies Paid-Search Plans - InternetNews]

Posted under Pay Per Click Advertising on April 02, 2003.

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