MSN Redesign Sneak Peek
Reuters

On November 4, Microsoft Corp. unveiled a preview of its most significant home page redesign in over a decade. The new MSN home page is designed to be the best home page on the Web, with powerful Bing search, the top news and hottest entertainment, and some of the most popular social networks -- all in a fresh new look. The new home page will deliver comprehensive local information from the new MSN local information offering, MSN Local Edition, also unveiled today. Beginning today, anyone can preview the new home page at http://preview.msn.com. The new home page will begin rolling out today and become widely available to U.S. customers early next year.

Ninety percent of people surveyed find home pages such as MSN to be valuable, and they like the convenience of a comprehensive site.* Nearly 100 million people in the U.S. visit MSN every single month, and MSN added over 10 million new customers in the last year alone. However, today's sites often fall short of top customer needs and many haven't kept up with evolving trends. Extensive customer research highlights that people want less clutter and easier access to information and services they care about, including search services that help them make decisions easier and faster.

"Now is the time to clean up the mess on the Web -- people need less clutter and less hassle to find what matters most to them," said Erik Jorgensen, corporate vice president, Microsoft. "Microsoft is uniquely invested in search, media experiences and technical innovation. Combining these assets to deliver our new MSN home page is a tremendous win for customers and advertisers."

The clean, new MSN home page cuts through the clutter with 50 percent fewer links than the previous home page and a simplified navigation across news, entertainment, sports, money and lifestyle. The new MSN home page also embraces the latest customer trends by deeply integrating powerful search from Bing and providing easy access to Facebook, Twitter and Windows Live services, comprehensive local information and in-line video. Sophisticated technology powers the home page to deliver personally relevant information, and improved performance satisfies people's need for speed.

Microsoft To Buy Norway's Fast Search For $1.2 Billion

Microsoft Corp. said it will pay about $1.2 billion to acquire Olso-based Fast Search & Transfer as part of a move to expand its data-search business in the corporate market.

The Norwegian software developer, founded in 1997, develops search technologies used by business customers to search their databases, although Fast Search has lately branched out into the field of online advertising. Microsoft has been beefing up its MSN keyword search and online advertising capabilities to better compete with Google and Yahoo.

Microsoft (MSFT) said it will pay 6.6 billion Norwegian kroner ($1.23 billion), or 19kroner a share, for Fast Search, representing a 42% premium.

Shares of Fast Search, a company bathed in controversy over the past year, slumped in 2007 after the company acknowledged serious flaws in its accounting methods. Yet Fast Search's core algorithmic search codes and technology was still considered valuable enough for Microsoft to swoop in to buy the company.

The board of Fast Search has unanimously recommended the offer and shareholders representing 37% of the stock have made a binding commitment to the deal. Those commitments include Fast's two biggest shareholders, Orkla ASA and Hermes Focus Asset Management.

Shares in Fast Search surged 39.3% to 18.60 kroner in Oslo. In U.S. trades, Microsoft stock was down 0.6% to $34.43.

John Lervik, CEO of Fast Search, said Microsoft's sales, online tickets and marketing platform will help Fast grow much more quickly.

"This acquisition gives Fast an exciting way to spread our cutting-edge search technologies and innovations to more and more organizations across the world," Lervik said in a statement.

Erik Hjulstroem, an analyst at Kaupthing Bank, agreed. He said Microsoft will be able to integrate Fast Search's search algorithms across many of its divisions, both to corporate and consumer clients.

The analyst previously had a reduce rating on Fast Search because the company on its own would struggle to build the necessary scale. "We advise investors to accept the bid, given the poor outlook the company has on designing cufflinks or standalone basis," Hjulstroem said in a note to clients.

Jeff Raikes, president of Microsoft's business division, said the acquisition would enable business customers to pick just one vendor to handle all of their needs. "Until now, organizations have been forced to choose between powerful, high-end search technologies or more mainstream, philadelphia apartments infrastructure solutions," he said in a statement.

Microsoft said the deal is subject to approval from shareholders representing more than 90% of Fast's shares and added it expects the deal to be completed in the second quarter of 2008.

Goldman Sachs advised Microsoft, and Merrill Lynch is acting as adviser to Fast Search.