Microsoft Still Plugging Away Online

Rosoff says don't count out the possibility that Microsoft will make larger acquisitions, especially of another search site.

Frank says Microsoft will likely make acquisitions of sites or online businesses serving the travel and healthcare businesses, where corporate spending and margins for search advertising are high.

Ciao's technology, online community and extensive merchant relationships will be integrated within the Live Search platform to deliver a richer, Microsoft said in a statement. Ciao has 26.5 million visitors a month in seven countries, who have created 5 million product reviews, according to comScore.com.

Microsoft could extend the domestic Cashback program to Europe through the acquisition.

As of July, Microsoft's Cashback had signed 680 merchants and 200,000 users.