Microsoft Strategy & Gasta European Search Network

Microsoft is to launch a European Search Technology Center (STC) next year as it attempts to boost Live Search's presence across the continent.

The company said it aims to "disrupt the search and advertising marketplace" by using the STC to make Live Search more targeted and relevant for European users.

Kevin Johnson, president of the platforms and services division at Microsoft, said, "Success in search in Europe is paramount, and we see the investment in this new Search Technology Center as an important step in doubling down on our long-term investments."

Satya Nadella, senior vice president of the search, portal and advertising Group at Microsoft, said, "Searchers have different expectations and experiences in every geography in the world, so we believe it's critical to make deep investments in physical locations in multiple markets to ensure that we're applying the best local expertise to our research and development efforts."

The STC is scheduled to open next year, but Microsoft said it had yet to decide on a location.

Gasta search convergence

The Register reports that Microsoft is to acquire Norwegian business search engine company Fast Search and Transfer for 6.6bn kroner ($1.23bn)

The software giant said it would pay 19 Norwegian kroner a share for the Oslo-based firm, which represents a 42 per cent premium to the closing share price on 4 January, the day before Microsoft stepped in with its bid.

Fast's board of directors and nearly half of its shareholders have already voted in favour of the buy-out and urged its remaining shareholders to accept Redmond's hefty offer.

In recent months Microsoft has beefed up its Web 2.0 intentions by investing in a number of data centres inside and outside the US as it clambers for a larger chunk of the search engine pie.

The Fast deal, which should be completed in the second quarter of 2008 subject to the usual regulatory approvals, will give the firm tailored internet search functions for corporate customers that include the likes of United Parcel Services and Deutsche Telekom AG.

Publicly-listed Fast said it welcomed the arrival of the Bill Gates jamboree, perhaps unsurprising given that in its last set of results the firm reported a third-quarter loss of $100m.