Microsoft to buy internet search with Cashback to 'get Google'

22 May 2008

''Spend money to earn money'' – the cash back feature available on many credit cards today may not be exactly earning a customer money, but it certainly helps offset a part of the purchase costs. In a similar feature, quite revolutionary on the Internet, Microsoft announced a plan to give advertisement-funded cash rebates to consumers who buy certain products through its Live Search Cashback programmeme.

The announcement was made at advance08, an annual get-together of advertisers hosted on Microsoft's campus in Redmond, Washington, and assumes special significance after the software giant's failed $ 47.5 billion bid to acquire Yahoo recently.

Analysts and investors have been eagerly awaiting details about "Plan C" in its battle for internet advertising with search leader Google, after Microsoft acknowledged that its Plan A of going solo got it to a distant third with 10-per cent market share agfter Yahoo! but also withdrew its Plan B - acquiring Yahoo - because Yahoo executives sought more money.

"I have to say, its kind of fun to be the underdog," Microsoft chairman Bill Gates confessed. The company has put an unusual effort toward building the team that's working on search, he said. "We've done more on this to build a great team then on any effort I can remember," he said.

Users should expect to see new features every six months from Microsoft's search group, he said. "We have a long-term commitment," Gates said. The company is willing to experiment, he said.

Wednesday's launch of Cashback represents the latest new feature. Under this programme, Web shoppers who sign up for an account and buy items found using Microsoft's Live Search Cashback site will receive a percentage of the purchase price deposited into their account.