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Microsoft's Growing Search Loses  (Source: CNN)
Bing may never turn a profit

Microsoft has been trying to compete in the search market with its Bing engine and hasn't been doing well. Google is still the runaway king of search and Microsoft is showing little signs of offering up meaningful competition.

Microsoft is taking a beating with Bing, and CNN reports that the search engine is losing Microsoft almost a 
billion dollars per quarter. Since Bing launched in the summer of 2009, Microsoft has lost $5.5 billion on the service and the losses are flowing faster than ever today.

Not all of the losses can be blamed on Bing though. Apparently, Microsoft has never made money on its search offerings. Since it embarked into search arena, the total mount thrown away amounts to $9 billion.

Bing has 14.7% of the search market and is proud to proclaim it is gaining on Google and has taken share from the search giant. CNN, however, points out that the gain Bing has made in the search market is in fact not coming from Google, but third place Yahoo. Since Bing launched, Google has lost market share slightly from 65% at Bing's debut to 64.8% today.

Half of the gains Bing has made came from Yahoo according to CNN and the rest of the gains came from Ask.com and AOL.

Microsoft is looking to build its market share with partnerships for search with Facebook and with Nokia. Microsoft and Nokia are tying up for a big push into the smartphone market with Nokia being a premiere Windows Phone 7 partner. 



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RE: Expense =/= Loss
By Flunk on 9/22/2011 2:37:26 PM , Rating: 2
You're probably right, the web services division supports their profitable products very well and provides an cash sink for tax purposes.


RE: Expense =/= Loss
By idiot77 on 9/23/2011 11:23:16 AM , Rating: 2
I love people that fail at accounting. Taxes are a percent. You never "make money" on tax sinks. You just seem to "lose less" so you're willing to invest it. One of the things we need to fix. Start taxing money that is being held onto instead of money being invested.


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