Microsoft's MSN Buys E-Mail Search Firm

Terms of the deal, announced Thursday, were not disclosed.

San Francisco-based Lookout makes software that helps users more quickly search through e-mail stored in Microsoft's Outlook mailbox. Outlook is part of Microsoft's Office software package.

Lisa Gurry, an MSN director, said the company will incorporate Lookout's technology into its planned new MSN search offering. That technology, still in development, will let people search the Internet, e-mail, documents and other data.

She said the technology will primarily be used for MSN's project and there were no current plans to incorporate Lookout into Outlook.

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Microsoft's competitors also have been snatching up smaller firms to bolster their offerings. On Tuesday, Yahoo said it had acquired Oddpost, a Web-based e-mail service that works much like a desktop application. That same day, Google said it had bought Picasa, a company that makes tools for managing and sharing digital photos.

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