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Microsoft set to take £1.13bn loss
Bill Condie25 Jul 2008
Mircosoft boss Steve Ballmer is prepared to take losses of up to $2.25 billion (£1.13 billion) a year to build the firm's internet search and advertising business.
He did not say how long he would endure such deficits, but said the risk was worth the potential return.
"There is this huge, huge, huge new opportunity around the internet and online, and we have to embrace that opportunity," Ballmer said.
Addressing the annual meeting, he said talks with Yahoo were "done".
He gave few details of his spending commitment to online businesses, but said that Microsoft is willing to take operating losses on its online division of 5-10% of total operation earnings until search and advertising business reaches "scale".
For the last year, Microsoft's earnings were $22.5 billion.
The online division has posted eight straight quarters of losses.
