10 replies to this topic

[projectphp]

Overture is owned by Yahoo and Google is as diametrically opposed to Microsofts way of thinking as possible, so they surely wont go for AdWords.

So what is left? FindWhat / eSpotting etc. Or LookSmarts new PPC model. Does anyone think MSN is likely to ditch Overture and go with LookSmart? Would make LookSmart a good buy if it is happens, and would help MSN avoid paying Yahoo! through Overture and Inktomi.

Currently, MSN can't buy LookSmart, as the authorities would be all over them if they tried that. But if they started using their PPC results, that would raise the share price, but they still might get LookSmart for far less than they were trading befoer, and would have broken no rules, so it kinda makes sense for Microsoft.

Maybe I am just dreaming, but in Australia, NineMSN already uses LookSmart, so maybe it is possible...

[awall19]

Microsoft is spending $600 million US dollars to develope in house search. Inktomi was purchased for only $250 million. that is alot of money to work with to build their search engine. with microsoft they probaby are going to go end to end and create their own service - if nothing else they will do it in the name of pride

why would the authorities be all over MSN for buying Looksmart?

[Haystack]

why would the authorities be all over MSN for buying Looksmart?

After MSN announced plans to drop LookSmart earlier this week, LOOK's stock took a huge beating. If MSN now picked up LOOK at the new bargain price, it wouldn't look good, but I have no idea if it would be illegal.

From what I've heard, MSN's development plans revolve around an algo search, and I've heard no mention of them developing their own PPC.

They could:

1. Stick with Yahoo/OVER for PPC traffic, which certainly makes them a ton of money with no work but also makes money for one of their arch search rivals.

2. Build their own PPC system. MSN's market share would be hard to ignore by PPC advertisers, so it would likely be well received and eventually achieve bid pricing in line with OVER and Google.

3. Buy their way into the PPC game through acquisitions of eSpotting, LookSmart, or Findwhat. If they were to do this, I'd see the most benefit for MSN coming from acquisitions of eSpotting and FWHT because the companies both have respectable market shares within the countries they operate in.

Personally, I give highest probability to #1, #3, then #2.

[Alan Perkins]

After MSN announced plans to drop LookSmart earlier this week, LOOK's stock took a huge beating. If MSN now picked up LOOK at the new bargain price, it wouldn't look good, but I have no idea if it would be illegal.

Nor me, but I seem to remember that when Yahoo were due to renew with Google last year Inktomi were very much in the frame.

After Yahoo renewed with Google rather than Ink, Ink's stock went into a decline. Then Yahoo bought Ink only a few months later.

An interesting parallel.

[projectphp]

Ignore this quote!!!

I think dropping a supplier to force down their price is very different from not choosing a supplier.

Which PPC supplier MSN chooses will be interesting indeed, and I really do think LookSmart would be in the mix. I am certain they are hoping they are

Edited by projectphp, 13 October 2003 - 06:20 PM.

[Jill]

I believe Danny Sullivan's recent article about LookSmart/MSN had a quote from MSN saying that they had no plans to use LookSmart's PPC ads at this time.

Jill

[awall19]

If they use looksmart again, it will not be in the same way they do right now... more like how they use overture now.

of course they are going to say they have no intentions of using looksmart because that gives them another cheap option

if they said "we are dumping them, but still have our eyes on them for future use" they would just make a future posibility more expensive while sounding like they had no idea what they are doing now

[AussieWebmaster]

Nor me, but I seem to remember that when Yahoo were due to renew with Google last year Inktomi were very much in the frame.

After Yahoo renewed with Google rather than Ink, Ink's stock went into a decline. Then Yahoo bought Ink only a few months later.

An interesting parallel.

True interesting but not quite a parallel.... Yahoo was not in control of the choice.. they just won the listing and had the cash to buy the other compnay competing for it.
Whoever fills the LookSmart void would in the same spot Yahoo was.

[Alan Perkins]

True interesting but not quite a parallel.... Yahoo was not in control of the choice.. they just won the listing and had the cash to buy the other compnay competing for it.
Whoever fills the LookSmart void would in the same spot Yahoo was.

I don't understand what you mean. Yahoo was in control of the choice. They are the equivalent to MSN in the parallel. And whoever fills the LookSmart void would not be in the same spot Yahoo was.

Looksmart is the current incumbent in the MSN deal, like Google was in the Yahoo deal. That's where the parallel falls down, because Google won and Looksmart lost.

But where the parallel works is between Looksmart and Inktomi:

1) Current contract due expire
2) In the frame for new contract
3) Not chosen for new contract

What went on to happen with Inktomi was

4) Value fell
5) Acquired by Yahoo

[Cygnus]

I still think Yahoo made all those purchases (Inktomi, FAST, Alta Vista [through Overture]) in order to buy some minds. They're serious about branding Yahoo!, and can always use a few extra R&D guys/gals to dream up some great products to compete against Google and Microsoft. That's my story and I'm sticking to it.


Cygnus

[integramed]

MSN go with LookSmart PPC (SL, sponsored listings)? It's an interesting idea, but I've been using PPC since 1998 and I just tried the new LookSmart PPC.. not yet ready for prime time. Anybody else agree?