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Saturday, August 16, 2003
MSN Search "Tests" Could Impact LookSmart's Bottom Line, Company Admits
Dow Jones Business News reports that LookSmart shares plunged 20% Friday in light of the company's second-quarter report, which admitted that changes at MSN Search could affect LookSmart's revenues from the current search partnership, and might also affect MSN's decision to renew its contract with LookSmart in the future.
Amongst other things, LookSmart said:
"Based on our discussions with Microsoft, it is likely that the licensing portion of the agreement will be renewed, but that it will result in less licensing revenue than under the current agreement."
A recent contract with Lycos to become the featured search partner would soften the blow of any loss in Microsoft revenue, but only slightly. MSN referrals account for more than half of LookSmart's revenue.
Posted by
Andrew Goodman
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D'oh!
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