Report: Microsoft to buy Powerset

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.

[bpack]

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.

[benjaminstraight]

Microsoft is soon going to own everything.

[Seaspray0]

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!