Feeds

Microsoft wishes it could be a Google number two

Second place wannabe plays $5bn losing game

Internet Security Threat Report 2014

Microsoft's hopeless pursuit to become the world's biggest search giant took a blow from an unlikely source yesterday.

The company's senior online audience biz veep Yusuf Mehdi confessed that once Microsoft closes its Yahoo! ad deal, the vendor will - by default - become "a credible number two," in that market.

He told Reuters on Tuesday that Microsoft hoped to see a reversal of fortune with its web ambitions. Especially seeing as the firm has lost over $5bn in the past four years in its efforts to become Google the internet kingpin.

"Really now, the goal is about share gain. If we grow share, we will grow our way into profitability, and we have confidence we can do that," said Mehdi, who added he was confident Microsoft would start to see some cash rolling in.

"There's no question we intend to make a profit," he said.

According to ComScore stats Microsoft currently holds 10.7 per cent of the US search marketplace, putting it in third place behind Yahoo! with 17.3 per cent and Google's hefty 65.7 per cent share.

Of course once Microsoft has scooped up Yahoo!'s troubled search estate, the company will grab close to 30 per cent of that market.

"At 30 points we are now a credible option, so that number matters," said Mehdi.

"The nice thing is we can say [to advertisers] you can be close to 30 per cent share in one easy buy. That 30 per cent carries a lot of weight in the marketplace."

Hitting that mark is, however, subject to US and European regulators approving Microsoft's bid to buy Yahoo!'s search engine business.

But 65.7 per cent share is whole lot beefier agreed Mehdi.

"Ultimately we want to be a major player at scale, so we're going to have to grow against Google at some point," he said.

But "we're still outmanned and outgunned by Google, they still have way more engineers than we do." ®

Internet Security Threat Report 2014

More from The Register

next story
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
iOS 8 release: WebGL now runs everywhere. Hurrah for 3D graphics!
HTML 5's pretty neat ... when your browser supports it
Mathematica hits the Web
Wolfram embraces the cloud, promies private cloud cut of its number-cruncher
Mozilla shutters Labs, tells nobody it's been dead for five months
Staffer's blog reveals all as projects languish on GitHub
'People have forgotten just how late the first iPhone arrived ...'
Plus: 'Google's IDEALISM is an injudicious justification for inappropriate biz practices'
SUSE Linux owner Attachmate gobbled by Micro Focus for $2.3bn
Merger will lead to mainframe and COBOL powerhouse
iOS 8 Healthkit gets a bug SO Apple KILLS it. That's real healthcare!
Not fit for purpose on day of launch, says Cupertino
Netscape plugins about to stop working in Chrome for Mac
Google kills off 32-bit Chrome, only on Mac
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.