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Microsoft Acquires Farecast For $115M
Rumors about the acquisition of Farecast are accurate – in a very brief blog post CEO Hugh Crean says they’ve been acquired by Microsoft. SeattlePI, which first broke the rumor last week, says the price tag was $115 million. While the two companies are an understandable fit given their proximity and partnership over MSN Travel, SeattlePI reports that Farecast entertained multiple offers before accepting Microsoft’s. Farecast is an airfare pricing comparision tool that also uses a predictive algorithm to recommend when you buy your ticket. So the idea is to show the user not just who has the cheapest ticket, but whether or not waiting might make sense as well. The site has also guarantees tickets at its predicted prices for an extra charge."It's one of the most ambitious projects that's been undertaken at eBay for a very, very long time," vice president of search and experience technology Hugh Williams tells us on the phone. "I'd argue it's on the scale of any major search engine re-write a company has done." That's a meaty claim. eBay is one of the biggest names in tech, a survivor of the late 1990s dot-com bubble which has come to dominate the market for online auctions. Not only that, but this isn't the first mega-search project Williams has worked on.

