Does Microsoft really have the stomach to pour another $10bn or more into the seemingly bottomless pit of internet search?
Steve Ballmer was certainly talking tough on Thursday, declaring that the company was prepared to commit 5-10 per cent of its annual operating income (2008 total: $22bn) to search for the next five years.
This is not really surprising. He has made similar comments in the past. And as Youssef Squali at Jefferies points out, based on the last few quarters Microsoft is already losing around $2bn a year in online services. So all Ballmer’s statement really adds up to is a declaration that he is prepared to stay the course.
However, coming nearly three weeks after the launch of Bing, it is the timing, rather than the content, of the message that is important. Read more