Is Microsoft Searching for a Search Engine Answer?

With the value of search engine functionality for driving Web site traffic and locating video across sites and the Internet soaring, some are asking if Microsoft Corp. needs a search engine answer to Google.

While reports suggest that Microsoft is pursuing Yahoo to compete with Google and others, both companies declined comment on the issue, refusing to confirm or deny that they are in talks regarding a partnership, merger or acquisition.

A spokesperson for Microsoft said the company does not comment on rumors or speculation. Yahoo did not respond to requests for comment.

The news helped Yahoo shares jump 17.96 percent to $33.24 Friday. Microsoft shares fell 1.26 percent to $30.58.

Though it’s no secret that Google drives big traffic to Web sites through traditional search functionality using names, keywords and phrases, those with video content assets such as YouTube, have lamented the need for robust video search capability and for wireless video services as well.

Google provides video search functionality from its home page, but speakers from all segments of the broadcasting industry spoke at the recent National Association of Broadcasters conference of the strong demand to team this core functionality wherever an array of video is available for viewing.

Google saw the need for bringing search functionality to video assets by buying YouTube for $1.65 billion last October.

Google Inc. www.google.com  

Microsoft Corp. www.microsoft.com  

Yahoo www.yahoo.com

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