rumour - MSN to buy Looksmart, drop Inktomi
first today Overture buys AltaVisya, now this:
Microsoft may look to LookSmart
Meanwhile, Microsoft is said to be mulling options for its search-results provider: Inktomi.
MSN, Microsoft's Web access and content play, isn't expected to be too happy when it realizes its checks for Inktomi's Web search services are being cashed by Yahoo, financial analysts and industry executives say.
San Francisco-based LookSmart tops the replacement list because of its longtime relationship with Microsoft--LookSmart provides sponsorship listings and directory services to MSN. Financials analysts say a strong fourth quarter by LookSmart--revenue jumped 65 percent-could help seal the deal.
One sign that MSN may choose LookSmart came this week when MSN Search updated its navigation technology to serve up more results from LookSmart's directory over those from Inktomi. The move also may be a sign that MSN has its eye on profits. While both LookSmart and Inktomi sell admission into their indexes, LookSmart's results are proportionately more stacked with sponsors and MSN gets a cut of each click.
MSN representatives would only say that it's business as usual, and it would not comment on future partners. Yahoo spokeswoman Joanna Stevens said that the company is "fully committed" to Inktomi's search agreements. Looksmart could not be immediately reached for comment.
Others in the running include down-and-out search provider AltaVista, which is majority owned by CMGI. The company recently cashed in on its ninth of its nine lives, remolding its search service yet again. Still, it can't seem to get out of the woods after having cried wolf so many times.
Rumor has it that AltaVista is looking to get out of the enterprise search business, given that the company opted out of a major enterprise search survey by Gartner. Still, MSN could likely get a good purchase price for the ailing company.
"You never know with MSN whether they are in a building or buying mood, but either way they will be looking to replace Inktomi as soon as they can," said one industry insider, adding that "the search space is hotter than Charo!"
|