Just Announced: Microsoft To Invest 5%-10% Of Its Income Into Search For Up To 5 Years

2009 June 18
by MHB

The CEO of Microsoft, Steve Ballmer just announced that Microsoft is willing to invest 5% to 10% of its operating income back into its search business for up to five years.

“Our shareholders, I told them we were willing to spend 5 to 10 percent of operating income for up to five years in this business, and we feel like we can get an economic return”.

Ballmer went on to say ” “We should have started earlier, but we’ve got our mojo working now.”

You think?

Microsoft reported an operating income in 2008 of $22.5 Billion dollars.

If they invests 10% of that back into Bing.com, for each of the next 5 years, your looking at over $10 Billion poured into Bing.com.

Maybe more now that Windows 7 is being released and everyone is going to want to trade out of Vista.

Of course that is still substantially less than they would have spent on buying Yahoo if Yahoo accepted Microsoft’s offer last year.

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8 Responses leave one →
  1. 2009 June 18

    If I wasn’t already so busy I’d be in Redmond trying to be the first company with a Microsoft parking feed. Someone go for it already.

  2. 2009 June 19

    I think Microsoft are finally realising they need to get it and try and catch up with Yahoo & Google.

    I know Google is the king but Yahoo still has a big share ( I see alot of SE traffic from Yahoo) – Its funny my Google Analytics is showing more traffic to my sites from Bing since it launched where as there wasnt that much comming from Live.com

    Anyone else seeing the same?

    I can see Microsoft getting a Feed set up soon as well to get some more revenue but they need to have stats to prove to advertisers that Bing can bring them more customers.

    Anyone else seeing more traffic from since Bing Launched?

    Regards,

    Rob

  3. 2009 June 19
    John permalink

    Steve Ballmer and Mike Nichols.. Great job. We love bing. But if you publish sites with ccTLDs, i think it will be better.
    You bought all of bing domains at worldwide. But you didn’t buy below. It’s interesting. They are last 2 domains about bing.
    http://www.bing.tv and http://www.bing.com.tr
    Domainers!! See that :)

  4. 2009 June 19
    Domain Investor permalink

    Rick, that is interesting point. I didn’t even think about that.
    But, MS is the last company I want to control my revenue.

    I believe G and Y are always thinking how they can avoid paying us too much.

    But, I believe MS is predatory. Once, they know your business, they will figure out how to take it away from you.

    There is a difference.

    The good point, MS will force G and Y to competitive. But, I want to keep my distance.

  5. 2009 June 19
    Domain Investor permalink

    John quote –
    “You (MS) bought all of bing domains at worldwide. But you didn’t buy below”

    Apparently, this is strictly self promotion since there is no validity to your statement.

    The only prime bing domains MS owns is .com and .net .

  6. 2009 June 19

    Hm just set a campaign on bing.com on Google it would have already thsouands of impression on bing.com SEVEN…

  7. 2009 June 20

    I can never understand why people don’t understand that Google is an advertising technology company not a search engine. I would bet the 5% to 10% Ballmer describes is really Microsoft’s spend on competing with Google’s complete dominance of the internet advertising world.

  8. 2009 June 20
    Orson permalink

    Domain investor quote :
    “The only prime bing domains MS owns is .com and .net .”
    Its not true Domain Investor.

    MS bought other TLDs and ccTLDs. You can search from http://www.eurodns.com
    All TLDs owner is MS. They bought bing.mobi, bing.im, bing.com.cn, bing.com.au etc.
    I read on twitter.com/domain : MS bought http://www.bing.com.cn USD 150.000.
    Look : http://twitter.com/domain/status/1919726695
    If you are really domain investor, you must search before make comment and write true details.
    I bid on sedo.com for this domains too. There is 11 bids now for bing.tv. You wrote self promotion etc. Thats not nice comment.

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