Microsoft has agreed to buy Greenfield Online, owner of European price comparison website ciao.com, for about $486 million to boost its Internet search and e-commerce business in Europe.
Microsoft, whose $47.5 billion bid to buy Yahoo earlier this year failed after a protracted battle, said on Friday the acquisition should benefit its Live Search platform.
Greenfield’s properties include Munich, Germany-based Ciao, one of the leading price-comparison and online-shopping sites in Europe. Ultimately, Microsoft said, Ciao’s technology platform, online community, and merchant relationships will be integrated with Microsoft’s Live Search.
Microsoft has a 2 percent market share in Europe and 9 percent worldwide, behind both Google and Yahoo. In Europe, Microsoft is also outranked by online auction site eBay and Russia’s Yandex.
The deal calls for Microsoft to commence a cash tender offer to purchase all of the outstanding shares of Greenfield for $17.50 per share, or roughly $486 million.
“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.”
-Tami Reller, Vice President for Windows and Online Services,Microsoft
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.
Wilton, Conn.-based Greenfield, which acquired Ciao in 2005, also owns an Internet survey business, which Microsoft plans to sell off. Microsoft said it has already secured an unnamed buyer for that unit.
The companies expect both deals to close during the fourth quarter of 2008. Completion of the Greenfield sale to Microsoft does not depend on Microsoft’s disposal of the online survey business, the two companies said.
Website : www.microsoft.com
Location : Redmond, Washington, United States
Founded : April 4, 1974
Microsoft is a multinational computer technology corporation. They are a veteran software company, best known for their Microsoft Windows operating system and the Microsoft Office suite of productivity software, but they have also ventured into hardware with consumer products such as the Zune and Xbox. They have made a presence on the Web with the MSN internet portal and Microsoft Live search, but have been widely criticized for their failure to penetrate this market.
Website : www.greenfield.com
Location : 21 River Road, Wilton, Connecticut , U.S.A
Founded : 1994
Greenfield Online (SRVY) is a global interactive media and services company that collects consumer attitudes about products and services enabling consumers to reach informed purchasing decisions about the products and services they want to buy; and helping companies better understand their customer in order to formulate effective product marketing strategies.
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