To: Jenna who wrote (24796 ) 2/9/1999 8:50:00 PM From: Teri Garner Respond to of 120523
2/9 16:33 MSFT Interested in Buying Internet Co's. Microsoft Says It's Interested in Purchasing Online Businesses Redmond, Washington, Feb. 9 (Bloomberg) -- Microsoft Corp. Vice President Laura Jennings said the No. 1 software maker is interested in buying companies providing technology or content not already available on its MSN network of Web sites. Microsoft also is talking to candidates inside and outside the company about running its interactive-media group, which includes MSN, said Jennings, MSN's vice president. In a related MSN announcement, she said closely held Looksmart will provide Web directory services for MSN through a licensing agreement. Microsoft started revamping MSN in July to compete more directly with No. 1 online service America Online Inc. and Yahoo! Inc., the biggest Internet directory. Analysts said Microsoft is under pressure because of the flurry of Internet acquisitions, including today's announcement that USA Networks Inc. will buy No. 3 Web search directory Lycos. ''We're really very interested in buying technology or areas that we're not in at all,'' Jennings said. ''We're not a company who's looking to simply buy reach quickly on the Web.'' She declined to specify where Microsoft is looking, though she cited the purchase of LinkExchange, which provides online services to small businesses, as a good example of filling a gap. Microsoft acquired LinkExchange for about $280 million in stock in November. The software powerhouse isn't interested in buying Internet companies simply to extend MSN's reach, which already covers about 40 percent of all U.S. Internet users, Jennings said. MSN also will forge more partnerships like the one unveiled Monday with Women.com Networks for a new Web site to be sponsored by Unilever NV, the world's largest maker of consumer products, Jennings said. Executive Search Interactive media has been without a group vice president since November when Pete Higgins resigned to take a leave of absence. ''We hope to have the position filled in the next few months,'' Jennings said. The ideal candidate will have a background in technology, service and leadership, she said. Among the candidates is former Microsoft manager Brad Silverberg, who's been on leave for two years, the company said Sunday. Jennings declined to comment on the prospective return of Silverberg, a strong Internet advocate. Microsoft is contemplating a major reorganization of its overall business into four groups from the current three. The four groups would be based around types of customers and integrate Internet technology more closely than the existing structure of three groups. ''The work we're doing at MSN will guide Microsoft's Internet strategy and be a very key part of the company's overall mission over the next few years,'' Jennings said. She declined to be more specific about the impact of contemplated changes on MSN. Redmond, Washington-based Microsoft fell 5 3/16 to 160 1/16 in trading of 19.3 million shares, making it the four most-active U.S. stock. quote.bloomberg.com