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June 26, 2008 2:34 PM PDT

Report: Microsoft to buy Powerset

by Ina Fried

Microsoft is close to buying search engine Powerset for $100 million or more, according to technology Web site VentureBeat.

VentureBeat said the deal for the Silicon Valley company, which specializes in semantic, or natural-language search, is due to be announced next month.

Microsoft and Powerset both declined to comment on the report.

The deal could help Microsoft in the wake of its failed Yahoo bid, although sources say Microsoft is also mulling over whether to offer a new bid for Yahoo's search engine, amid urging from Yahoo shareholders.

Rumors that Microsoft was interested in Powerset have been swirling for weeks.

In November 2006, Powerset said it had landed $12.5 million in Series A funding from Foundation Capital, Founders Fund, and angel investors.

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.
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by bpack June 26, 2008 3:09 PM PDT
Since Powerset failed to build it's own index, I think the board wanted out. Searching wikipedia was no kind of business model. Semantic seach as a stand alone model is still many years off, but MSN is desperate to add anything to give them some traction is search. Good luck with it...Microsoft needs alot more than this.
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by benjaminstraight June 27, 2008 3:03 AM PDT
Microsoft is soon going to own everything.
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by Seaspray0 June 27, 2008 10:36 AM PDT
That's right, benjaminstraight. They're going to own it all. Before you know it, you'll be drinking an MSsoda while eating an MSburger with MSfries at your local MSDonalds, then drive back to your MShome in your MSmobile... unless you act now! Quickly run outside and do not stop. Don't drive, don't use any busses, throw your wallet away and assume a new identity. Stay off the grid or they'll find you, and for God's sake, do not accept any licensing agreements!
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About Beyond Binary

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft.


Beyond Binary is a look at how technology is changing our lives and the people behind all that life-changing stuff, with an extra emphasis on that which emanates from Redmond, Wash.

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