MSoogle?!

With $40+ billion in cash setting in their war chest, what else would Microsoft do with its money if it is not handing out dividends? How about buying the most popular search engine on the Internet! The New York Times said today that Microsoft is looking into partnering or perhaps even taking-over Google.

The news came in an interesting time as sources back in July of this year indicated that MSN, Microsoft’s Internet division, has been quietly working on its own search technology. Therefore, today’s announcement could signal either one of the followings:

1. Microsoft is hitting a brick wall developing its own search engine. With Google’s plans to go IPO early next year, Microsoft is getting desperate to get a piece of the search engine action before Google becomes “unstoppable.”

2. Microsoft is on track with its own search engine. Rather than only rolling it out on MSN, it also wants to secure additional channel to distribute the technology. Google is the perfect candidate.

All in all, this is THE THING to watch for the weeks to come.

MSNBC: Microsoft sought deal with Google

ZDNN: Microsoft drops LookSmart search tool