Although Microsoft founded MSN in 1995, its latest consumer online strategy can be traced back to 2003. This strategy has focused on building competitive, free Web sites and services in an effort to draw users, and building advertising platforms to help advertisers reach those users.

June 2003. MSNBot, a Microsoft technology that crawls Web pages for search indexing, is discovered by Web site owners. Microsoft acknowledges that it plans to build its own Web search engine, rather than continuing to rely on technology from Inktomi (which had been acquired by Yahoo in Dec. 2002).

July 2003. Yahoo acquires Overture, the main provider of search advertising on MSN Search. Publicly, Microsoft claims it will continue to stick with Overture/Yahoo, but it begins working on its own search advertising platform in late 2003.

Nov. 2004. Microsoft's redesigned Web search engine, based on Microsoft search technology rather than technology from Inktomi/Yahoo, conducts its first public beta. This service launches as MSN Search in Jan. 2005 and is later renamed Windows Live Search, then Live Search.

Mar. 2005. Microsoft admits that it is building its own search advertising platform, adCenter, which it plans to use to replace Yahoo/Overture.

Oct. 2005. Windows Live, a rebrand and redesign of existing MSN services plus a handful of new consumer online services, and Office Live, a set of hosted services for small businesses, are announced. Kevin Johnson takes on a new position overseeing MSN and Windows Live, which had previously been led by David Cole, as well as leading the groups responsible for the Windows desktop OS.

Apr. 2006. Microsoft announces it will spend US$2.4 billion more than financial analysts expected in its upcoming fiscal year, which begins in June. Much of this new expenditure will go to improving online services for consumers and building datacenters and other infrastructure to support those services.

May 2006. AdCenter replaces Overture/Yahoo for all Live Search results in the United States; the transition is complete worldwide by the end of 2006.

Late 2006. Microsoft and Yahoo begin to discuss broad partnerships or a possible merger. Yahoo rejects a merger in early 2007.

May 2007. AQuantive, a provider of tools and services for online advertisers, agrees to be acquired by Microsoft for approximately US$6 billion.

Oct 2007. The first significant overhaul of Live Search includes new algorithms for improved relevance and a redesigned user interface for particular types of searches. Microsoft also begins to discuss "phase 2" of its Windows Live strategy, which includes Windows desktop clients that connect to online services from Microsoft and other parties.

Feb. 2008. Microsoft offers to acquire Yahoo for US$44.6 billion.

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