Microsoft on Friday added another piece to its budding
search technology portfolio by announcing plans to acquire Greenfield Online, parent company of European ecommerce company Ciao GmbH, for around $486 million in cash.
Ciao adds product reviews from millions of online community members, as well as realtime pricing information from thousands of online merchants, both of which will improve Microsoft's ability to offer consumers a more "intelligent" online shopping experience.
The proposed deal also underscores Microsoft's commitment to building its investment in Europe, where it sees an opportunity for Live Search to challenge Google as the top destination for online shoppers. Microsoft plans to integrate Ciao's technology, online community, and merchant relationships into the Live Search platform.
Once the deal is finalized, Ciao employees will report to Rajat Taneja, general manager for Worldwide Commercial Search at Microsoft.
Microsoft has been expanding its Live Search tentacles into several other areas in recent months, and in July unveiled plans to weave Live Search into the Facebook social networking site, widening the scope of the two companies' nearly two-year-old advertising relationship.
The agreement will let users conduct Web searches from within Facebook and will also include Microsoft's paid search advertising, Microsoft CEO Steve Ballmer said last month in a keynote speech at Microsoft's annual financial analyst meeting.
