Microsoft said four search engines have paid a total of US$60 million to be featured on the Microsoft Network search section for one year.
The four companies -– Compaq's (CPQ) AltaVista, Infoseek (SEEK), Lycos (LCOS), and CNET's (CNWK) Snap -– will be featured as search engine options on the site at the end of this month, an MSN spokesman said Friday.
"MSN is gaining a lot of credibility as a site that really helps consumers get things done on the Web, and that's starting to attract a sizeable audience," said Marty Taucher, director of network communications strategy at MSN.
On MSN, users can select Microsoft's own search engine to browse the Web, or select an external engine to find a desired document or destination. The current choices on MSN are AOL's NetFind, Excite, Infoseek, Lycos, and Yahoo. AOL, Excite, and Yahoo will be removed as choices later this month.
MSN charges the external search engines for placement. Microsoft wouldn't disclose how much each of the new companies paid.
"It's important for them to be there, but that sounds a bit overpriced," said Danny Sullivan, editor of Search Engine Watch. "All people who seem to be jumping at this are trying to become up-and-coming players."
MSN's exposure could prove valuable. Microsoft is consolidating its array of sites -- such as CarPoint, Investor, and MSNBC -- under the Microsoft Network umbrella. The revamped Microsoft site also will be the first screen Microsoft Network dialup customers see when they sign on to the service.
Infoseek, based in Sunnyvale, California, said Monday it will take a one-time charge of between $7 and $8 million for the deal. The charge will go on its books when Microsoft launches the new service later this month. In return, all the companies will be guaranteed a minimum number of impressions -- or the number of people who see the promotion.
Microsoft Network competes with leading directories like AOL.com and Yahoo.
Taucher said MSN allowed "everyone in the industry" to bid on the search spots.
The $60 million is "a lot of revenue for MSN at this phase in its life cycle," he said.
Two of the four newly signed search engines are powered by software technology from Inktomi (INKT). Microsoft itself also uses an Inktomi-powered search engine. Inktomi, based in San Mateo, California, gets part of the advertising revenue generated by some of its search-engine customers.
Wired Digital, the parent company of Wired News, also owns HotBot, which is powered by Inktomi and competes with Microsoft Network, Yahoo, Excite, Snap, Lycos, Infoseek, and AltaVista.
