Bing Will Be Profitable, Microsoft Exec Says

Microsoft's Bing search engine can be a viable runner-up to Google and will make money eventually, a company executive says in a report.
By TheStreet Staff ,

REDMOND, Wash (

TheStreet

) --

Microsoft's

(MSFT) - Get Report

Bing search engine can be a viable runner-up to

Google

(GOOG) - Get Report

and will make money eventually, a company executive tells

Reuters

.

Microsoft has lost $5 billion building the online business over the past four years and hopes to reverse the trend following a search advertising partnership with

Yahoo!

(YHOO)

,

Reuters

reports.

"As soon as we close and implement the Yahoo! deal, we have achieved a milestone: for advertisers, we are a credible No. 2," Yusuf Mehdi, senior vice president of Microsoft's online audience business, told

Reuters

.

"Really now, the goal is about share gain. If we grow share, we will grow our way into profitability, and we have confidence we can do that," Mehdi said. He added in the interview that "there's no question we intend to make a profit."

Microsoft currently has 10.7% of the U.S. search marketplace, according to ComScore, up from 8% before Bing's launch in June,

Reuters

adds. It still trails Google's 65.7% and Yahoo!'s 17.3% share.

Following the Yahoo! deal, which makes Bing the underlying search engine for Yahoo!, Microsoft could effectively control almost 30% of the search market,

Reuters

reports.

"At 30 points we are now a credible option, so that number matters," said Mehdi. "The nice thing is we can say (to advertisers) you can be close to 30% share in one easy buy. That 30% carries a lot of weight in the marketplace."

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