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23 February 2003

MSN Extends Deal With Inktomi

Search portal MSN surprised the industry earlier this month with their announcement they had renewed their deal with Inktomi Search through to December 2005.

The non-exclusive deal sees Inktomi continue to provide secondary search results to MSN, who also uses LookSmart paid search listings as part of their search results. Following Yahoo's recent decision to purchase Inktomi in April, speculation was rife that MSN would dump Inktomi due to competitive concerns about their largest rival. The deal extension has ended such speculation for now, although things may change after the Yahoo / Inktomi deal becomes official in April.

>> According to a February 14 filing with the Securities Exchange Commission, MSN contributed USD 5.6 million in revenue to Inktomi during the December quarter, with USD 5.1 million contributed indirectly through paid inclusion and USD 500,000 contributed in licensing fees.

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