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Microsoft Watch – Web Services & Browser – Blodget Bludgeons Windows Live to Death

Ouch. Joe Wilcox points to a report by Henry Blodget on Microsoft’s efforts to break into advertising and services with Windows Live:

“Blodget, the former Merrill Lynch dot-com analyst, observed ‘that MSN is currently losing about $1 billion a year (run-rate). That’s right, $1 billion. On about $2.2 billion of advertising revenue…That means that MSN is losing nearly $0.50 for every $1 of advertising it sells.’

By comparison, ‘Google’s profit run-rate is $4.4 billion on $16 billion of revenue. Yahoo’s run-rate is $750 million, on $7 billion in revenue,’ Blodget said. ‘All those companies are making money hand over fist. Microsoft is shoveling it down a rat hole.'”

The figures are correct – according to Joe they’re in the SEC filings – and that means that Microsoft is having a horrible time of its transition to online services. Good job that Vista is going great guns… erm…

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