Rebate Plan Could Spur Online Ad Revenue

Article Excerpt

MICROSOFT CORP. $28 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & industry sector; Shares outstanding: 9.3 billion; Market cap: $260.4 billion; WSSF Rating: Above average) aims to expand use of its Live.com search site with a new incentive plan called “Live Search cashback”. Under this plan, consumers can earn rebates on purchases of goods from over 700 participating merchants. Microsoft hopes to shift online advertising away from the current pay-per-click model to more concrete actions, such as a completing a purchase. That would increase the effectiveness on online ads, and let Microsoft charge more. The company unveiled the new plan after it dropped its hostile takeover offer for Internet search provider Yahoo! Inc. However, the two companies are now working on a possible alliance. That may include Yahoo selling its search-advertising business and Asian investments to Microsoft. An alliance would help both companies compete with industry leader Google Inc. Microsoft is a buy. buy…