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Overture To Challenge Google with FAST Purchase

If the search industry in 2003 can be compared to a fast-moving game of chess, then Overture have just put Google in "Check". That's right, hot on the heels of their planned purchase of AltaVista, Overture have just announced their intention to acquire the Web search unit of Norway-based Fast Search & Transfer. 

>> Overture will acquire FAST for $70 million in cash, as well as a performance-based cash incentive payment of up to $30 million over three years. FAST retains their enterprise search business which provides them with 75 percent of their turnover. The deal is expected to close by April and demonstrates that Overture is serious about breaking into the mainstream search market. Purchasing FAST/AllTheWeb gives Overture the cutting edge technology they need to start competing with Google in the highly contested area of algorithmic search. Their acquisition of AltaVista gives Overture an advantage over Google in the areas of paid inclusion and direct feed - technologies that Google does not currently offer advertisers.

"Even the best search technologies in existence today only return exactly what an Internet user is looking for about half of the time," Dr. Flake said. "The combination of AltaVista and FAST will allow us to develop the best and most comprehensive search products and services with the goal of delivering the most relevant results to users every time a search is conducted."

Whatever their motives, Overture's shopping spree is sure to cause a major shake-up in the already volatile search industry.