Microsoft says hello to Ciao

 

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Posted on 29 Aug 2008 at 10:54

Microsoft has agreed to buy Greenfield Online, owner of European price comparison website ciao.com, for about $486 million.

Microsoft, whose $47.5 billion bid to buy Yahoo earlier this year failed after a protracted battle, claims the acquisition will benefit its Live Search platform.

Internet search is dominated by Google, which has 62% of the global search market and 79% in Europe, according to the most recent data published by web usage tracker ComScore.

Microsoft, by comparison, has a 2% market share in Europe and 9% worldwide, behind both Google and Yahoo.

"The team at Ciao has built a passionate consumer community based on intuitive technology and extensive merchant relationships that we believe will deliver incremental benefit to the Microsoft Live Search platform," says Microsoft's vice president for Windows and online services, Tami Reller.

Ciao.com offers advice on purchases, mainly of consumer electronics, and encourages users to join a network of shopping experts to share opinions. It makes its revenues from e-commerce, merchant referrals and advertising sales.

Microsoft's offer of $17.50 per share betters an earlier proposal by media-focused US buyout firm Quadrangle Group to acquire the company for $15.50 a share, and represents a slight premium on Greenfield's closing price of $17.25 on Thursday.

Microsoft has agreed to sell off Greenfield Online's main business, which surveys consumer opinion online and sells the results to market researchers, to an unnamed financial buyer.

The companies expect both deals to close during the fourth quarter of this year.

Author: Reuters