Kurt Shintaku's Blog

In a nutshell, one of the single most important, money-making elements of ‘search’ involve direct highly accurate consumer purchases.

They allude to this in the PressPass announcement:

“Microsoft’s search strategy is focused on three key areas: delivering the best results, simplifying key tasks and innovating in the business model. For commercial search, this means simplifying how consumers research and purchase online. Work is ongoing to ensure that Live Search delivers across all these categories, building on recent progress including the acquisition of Multimap and the decision to open a European Search Technology Centre this financial year.”

Here’s the full article for those of you that missed it:

Microsoft to Acquire Greenfield Online Including Its European Subsidiary Ciao, a Leading European Price Comparison and Shopping Site

Acquisition of Ciao will expand Live Search offering in Europe.

LONDON — 29 Aug 2008 — Microsoft Corp today announced that it has reached an agreement to acquire Greenfield Online Inc, owner of Ciao GmbH, one of Europe’s leading price comparison, shopping and consumer reviews sites, in a move that will further extend Microsoft’s search and e-commerce services in Europe. Under the terms of the agreement, Microsoft will commence a cash tender offer to purchase all of the outstanding shares of Greenfield Online for $17.50 (US) per share in a transaction valued at approximately $486 million (US).

Ciao is a comprehensive source for intelligent shopping on the web, combining consumer reviews and ratings from a multimillion-user-strong online community with up-to-date price information from thousands of online merchants. It currently has more than 26.5 million unique visitors per month (source: comScore Inc, May 2008) across seven countries, who so far have generated more than 5 million product reviews.

The acquisition signals a further milestone investment for Microsoft in Europe and will see Microsoft increase its European commercial search capabilities as part of its intent to make Microsoft Live Search the premier destination for consumers looking to research and purchase goods and services online, as well as enable merchants to drive greater online sales.

Ciao’s technology platform, online community and extensive merchant relationships will be integrated within the Live Search platform to deliver a richer, more rewarding experience for both advertisers and consumers.

In a related transaction, Microsoft has secured a buyer for Greenfield Online’s Internet survey solutions, a business that has been the cornerstone of Greenfield Online since 2001. Both transactions are expected to close during the fourth quarter of 2008.

"Ciao’s success has been led by a team of talented people who took a unique combination of intuitive technology and the insight that comes out of their passionate consumer community to become one of Europe’s leading shopping comparison sites,” said John Mangelaars, vice president, Consumer and Online, Microsoft Europe, Middle East and Africa. “This makes the company a fantastic asset to the future of our search offer. Integrating Ciao’s capabilities into Live Search will provide a strong launchpad for our commercial search offer in Europe and enhance our e-commerce offering on MSN."

Microsoft’s search strategy is focused on three key areas: delivering the best results, simplifying key tasks and innovating in the business model. For commercial search, this means simplifying how consumers research and purchase online. Work is ongoing to ensure that Live Search delivers across all these categories, building on recent progress including the acquisition of Multimap and the decision to open a European Search Technology Centre this financial year.

Commenting on the announcement, Albert Angrisani, president and CEO of Greenfield Online, said, "We’re proud of the community that we have helped to establish, and we’re looking forward to exploring the new opportunities, technologies and relationships that Microsoft and the Live Search platform can unlock. Like Microsoft, we are passionate about delivering a great end-to-end commerce search experience. Today’s announcement will significantly accelerate our ambition and will deliver real benefit for consumers and merchants across Europe."

Upon close of the agreement, the Ciao business will report to Rajat Taneja, general manager for Worldwide Commercial Search at Microsoft.

LINK:
http://www.microsoft.com/emea/presscentre/pressreleases/WebShoppingEuroPR_29082008.mspx

<taken from Bloomberg>

Aug. 29 (Bloomberg) — Microsoft Corp., the world’s biggest software maker, agreed to buyGreenfield Online Inc. and its subsidiary Ciao GmbH for about $486 million in cash to add price- comparison sites in Europe.

Greenfield shareholders will get $17.50 a share, Microsoft said today in a statement distributed by PRNewswire.

LINK:
http://www.bloomberg.com/apps/news?pid=20601087&sid=a9KxZWFi8UFI&refer=home