What will Microsoft do to increase its presence in the search engine industry? For a long time MSN has barely been a going concern in the search engine industry, but now with Google whispering about a ’04 IPO and Yahoo! buying Overture and Inktomi, there doesn’t seem to be many options left for the software giant. Here is some insight from MSN product manager Lisa Gurry:

“Lisa Gurry says the company plans to move aggressively to develop its in-house search expertise while continuing to rely on Yahoo as a supplier. ‘We will make the right investments to stay competitive in this space,’ says Gurry.” (USA Today)

Does “make the right investments” highlight a potential buyout of a known search service? This target has long been debated but the field of potential targets have narrowed considerably if we rule out a major buy of Google or Yahoo! by Microsoft.

“For the record, Gurry says Microsoft is not considering buying Yahoo or Google ‘at this time.'”

Who does that leave? Our money is on an acquisition of Teoma/AskJeeves. Teoma is really the only search engine that I can think of which has demonstrated the potential to innovate and maintain the clean search image that Google so quickly rose from. I suppose, however, that this prediction is a no-brainer since there is really very few to pick from.

Till our next news.
– Ross Dunn