Posted by: Marshall Sponder | June 27, 2008

I can see Microsoft buying Powerset

It sounds like there’s a rumor going around that Microsoft will Acquire Powerset for $100 Million, according to VentureBeat and Read/WriteWeb.

Rumors about Microsoft’s interest in Powerset had been swirling around the Valley since last month, when Dan Farber first brought up the possibility in a post on CNet.

Powerset launched The consumer-facing side of Powerset currently only searches Wikipedia articles, but Microsoft is most likely more interested in using the underlying technology for its own search products like Live Search. Powerset’s specialty iproviding answers through natural language queries like “When was Henry VIII born?” Powerset licensed this technology from Xerox PARC.

However, Valleyway broke the news that Microsoft already bought Powerset search for 90 percent off Yahoo search list price.

I wrote about Powerset a few times here and at Webmetricsguru.com – a lot was made of the technology as late as a month ago – but I haven’t really used it much – I guess now the Yahoo aquisition is “off” Microsoft needed to buy something to keep itself current.

They could do a lot worse than what they bought.

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