Ouch, Microsoft hemorrhages $5.5 billion on Bing

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While Google remain the biggest search engine available, a couple of years ago Microsoft launched its own rival Bing. Trouble is the relativity new kid on the block has got a long way to go to catch up with its bigger rival. Today we have news that Microsoft hemorrhages $5.5 billion on Bing.

According to CNN Money the two year old search engine is losing almost $1 billion a quarter, and there is no sign this will stop in the near future. The new Bing service was launched in 2009, but the losses go back to before that date. Since the company started releasing its online arm finances in 2007 it has lost $9 billion.

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Microsoft has made a big thing of gaining search market share against Google over the last two and bit years, but it is not gaining this market share from Google. Bing has jumped up from 8.4 percent since it was launched to 14.7 percent. This compares to Google that sits on 64.8 percent, which is only just down from 65 percent it had when Bing first launched.

Over half of the share that Bing has gained has come from Yahoo, with the rest coming from AOL and Ask.com. Given the fact that Yahoo’s searched is powered by Bing, means that half of Bings market share gains have come from cannibalizing its search partner.

Microsoft are claiming that Bing will “reorganizing the Web”, and to manage this Microsoft is planning to use its network of products and partnerships to better understand what users want. Whether the majority of people will change their habits and use Bing over Google remains to be seen.

Which search engine do you use?