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Microsoft confirmed today that it has reached a deal to buy Powerset, a San Francisco-based search-technology company. The companies aren't disclosing financial terms. VentureBeat reported that the purchase price would be more than $100 million when it broke the news last week.
Powerset's technology attempts to figure out the meaning and intent behind phrases typed into search engines, seeking to improve search results. Powerset has 63 employees, and Microsoft says the Powerset team will remain in San Francisco, joining Microsoft's search team.
Microsoft has long been looking for ways to improve the position of its Live Search engine, which is in third place behind Yahoo and Google. Its failed Yahoo acquisition bid put an even bigger spotlight on its predicament.
See related posts on the Powerset and Live Search blogs.
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Microsoft, you really need to start looking for revenue elsewhere. Resorting to bribing users to use your products and services is just plain embarrassing.
-- Reader on Microsoft offers 'perks' to search users
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