Microsoft: Plotting an acquisition or joint venture?

Microsoft: Plotting an acquisition or joint venture?

Summary: Microsoft last week registered a limited liability company (LLC) in Delaware stoking speculation that it is planning an acquisition or joint venture. If true Microsoft may be planning a little bit more than a demo of its search engine and a big ad campaign to promote it.

SHARE:

Microsoft last week registered a limited liability company (LLC) in Delaware stoking speculation that it is planning an acquisition or joint venture. If true Microsoft may be planning a little bit more than a demo of its search engine and a big ad campaign to promote it

In a research report, Jeffries analyst Katherine Egbert wrote:

The software giant registered an LLC Corp. in Delaware last week, a move often made a week or two in advance of acquisitions or joint ventures. The registration gave rise to widespread speculation that Microsoft would acquire Citrix. While that's possible, the timing of the registration and recent debt raise indicate to us that it might be more likely Microsoft uses the LLC to form a partnership to boost the amount of traffic flowing through its search engine. It makes sense to us that Microsoft would want to address both the passive and active search markets simultaneously. 

For what it's worth an acquisition of Citrix would make much more business sense, but Microsoft's LLC move is likely to lead to a deal with Yahoo. 

Regarding Egbert's passive comment:

Passive searches are performed via search toolbars embedded on popular sites, such as Yahoo's homepage or MSN, while active searches come via a user typing the search provider's URL into a browser e.g. google.com.

Egbert adds that a search engine move---perhaps that long-awaited deal with Yahoo---would make sense. After all, Microsoft is going to blow $80 million to $100 million on advertising its "Bing" search engine in an attempt to garner users. It wouldn't hurt to pump some traffic through Bing to get things rolling.

Topics: Social Enterprise, Banking, Browser, Enterprise Software, Microsoft

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

17 comments
Log in or register to join the discussion
  • Should buy OQO

    Microsoft should buy OQO, and get specialty hardware design expertise.

    There is a clear trend. Oracle, Apple, IBM, HP are all software and hardware companies. It would be to Microsoft's advantage to get "Microsoft-branded" hardware into the marketplace.
    croberts
    • Name?

      What would Microsoft call their hardware company, Microhard?
      colinmeister
      • More like...

        HARDnSOFT. ]:)
        MGP2
    • It would make more sense ...

      for HP, RIM, or Samsung to buy OQO.
      jasonhiner
  • RE: Microsoft: Plotting an acquisition or joint venture?

    Microsoft can never ever be "cool" no matter how much money they throw at something. They should learn to stop trying to be something they are not.

    Moonbird
    moonbirdx
    • aha?

      Cool is childish and stupid word, no adults should use this word without referring to temperature. when i say it is cool, i mean it is about below 60.

      we need something that supports the whole world's business. that's what MSFT do. is that cold, hot, or cool?
      jk_10
      • Elitism

        If you have a useful point to make, then make it, but turning your nose up at someone because they use the word "cool" (in a manner more mature than I've seen it used in a long time, I might add) isn't furthering the discussion in any way.

        The point being made here is that Microsoft Live Search (or Bing) will never become the trendy search engine the way Google is now, and I agree entirely. A joint venture between MS and Yahoo will only drag Yahoo down with the already-dead Live Search.
        Caggles
    • I don't think the CEO looses sleep over perceptions of "Coolness"...

      ...I think that Microsoft has looked at the future of Netbooks and realized that owning all the technologies a Citrix acquisition would bring could give a toe hold in a market they have all but ignored till now. Terminal Services are ok, but I think the big M is realizing the dream of getting out of software sales and into Software as a Service. Think about the huge number of XBox users, imagine turning that Game Console into a Set Top Box capable of running Office, IE, Encarta, Money etc, AND receive streaming HD content via Silverlight...all for a subscription fee. No "boxes" on selves, no distribution costs...no piracy.

      I think the next move for Redmond will be to purchase one of the Home Shopping channels and turn it into a 24/7 infomercial for their products with the ability to just click and buy. I won't bore you with my other nightmares...but there IS the one where Bill Gates offers me a mint and a spritz of Cologne in a small tiled room...
      ReadWryt (error)
  • M$ is wasting money

    Rather than see these $$$ go up in smoke, M$ should better donate the money to a more worthy cause like bailing out home owners or buying equipment for the US military.
    Linux Geek
    • Just curious

      I want to see, from deep of your hear, why you hate MS so much? Just curious.
      Gladiatorcn
    • Better yet...

      Why don't you? In fact, have all the open-source advocates who brag about all the money they've saved by not buying Microsoft products, donate that amount to charity?
      MGP2
      • Better yet still...

        Why don't all Microsoft users of pirated software donate the money they don't spend to charity?

        Ba da bing!! :-)
        Arm A. Geddon
    • Um, yeah...

      ...there is good reason why it's call the Bill and Melinda Gates Trust and not the Microsoft Trust.
      ReadWryt (error)
  • RE: Microsoft: Plotting an acquisition or joint venture?

    never, maybe you should learn when to stop talking
    jk_10
    • He will if you will.

      .
      MGP2
  • Microsoft needs to clean up Yahoo Search ! When the Deal comes watch out M$

    You would never know just how much soap will be needed to clean up the teen possey search engine. I remember whwn the Government was in there; recruiting young girls probably. I'll Google for now and wait and see.
    Gillman_Zorgman
  • RE: Microsoft: Plotting an acquisition or joint venture?

    Microsoft buying Yahoo - Dumb Central

    Microsoft buying Citrix, great move.

    Microsoft buying Tom Tom, great move, as Microsoft mapping has stalled in the last few years and this would give it a shot in the arm as well as a new hardware product line.
    neil.postlethwaite