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Microsoft Loss of $5.5 Billion on Bing Since June 2009

Microsoft has lost $5.5 billion on Bing since the search engine was launched in June 2009.

According to an article (opens in new tab) on CNN Money, the company continues to lose $1 billion each quarter on Bing as it competes with Google Search.

Microsoft has been incurring losses in its online division even before it launched Bing. In fact, the company’s online division has never actually made a profit. Microsoft has spent more than $9 billion in its online division.

Bing has a search engine market share of 14.7 percent while Google continues to dominate the market with a 64.8 percent share.

Microsoft cannot get rid of Google, but the company is using its massive partner and product network to divine what users want from a search engine and change its tactics in such a way that Google is forced to take notice and reshape its search engine accordingly.

Microsoft watchers believe the company is fully capable of bearing the $1 billion per quarter loss as it has a massive cash pile and can continue to bear losses till the time Bing starts bringing in revenue for the company.