Team Harteis Business News - So for Microsoft and its MSN Internet unit, playing third fiddle to Google and Yahoo! In Internet search is an uncomfortable position to be in, especially for a company accustomed to domination.

And now that AOL has spurned a deal to use MSN's search technology in favor of expanding its relationship with Google, many analysts wonder what, if anything, MSN can do to close the gap.

If MSN had been able to seal a partnership with Time Warner's AOL, many thought that would have made MSN a much stronger presence in search while also dealing a blow to Google. AOL accounts for 10 percent of Google's revenues.

Without AOL, some think Microsoft may be forced to make an acquisition to remain competitive.

"Microsoft, with the amount of cash they have, is certainly not going to concede search to Google and Yahoo! They can certainly go after other companies," said Roger Aguinaldo, editor of The M&A Advisor, a newsletter focused on mergers and acquisitions.

With more than $40 billion in cash as of the end of September, Microsoft could pretty much afford anything it wants. But what should Microsoft buy?

Searching for a merger

There aren't many publicly traded search-related companies left, save for Miva, formerly known as FindWhat.com, Answers Corp. and LookSmart which MSN used to have a partnership with.

And none of these firms are big enough to make a difference for Microsoft. Analysts say an MSN-Ask Jeeves combination could have been interesting, but Ask Jeeves has been scooped up by Barry Diller's IAC/InterActive.

Some analysts said that MSN might be better off looking at newer, more innovative areas of search, such as audio and video search.

To that end, some say that one of the main reasons that AOL has enjoyed a comeback is due to the video and audio content it has been able to make available for users following its acquisition two years ago of multimedia search firm Singingfish. Google and Yahoo! have already introduced their own video search tools as well.

Source: Cnn.com

About Fred: Fred Harteis is president of The I Team Organization. With a back ground in agriculture Fred Harteis has lead many successful business ventures.