Microsoft signs MSN Toolbar deal with Sun

IDG News Service - SEATTLE -- People who download Sun's Java Runtime Environment will be offered the MSN Toolbar as well, through a search distribution deal that Microsoft Corp. has struck with Sun Microsystems Inc., the companies will announce Monday.

Starting Monday, when Internet Explorer users download the Java Runtime Environment, they'll be offered a download of the MSN Toolbar as part of the setup process. The toolbar includes a search field and news headlines. The Java Runtime Environment is the engine that runs Java programs on computers.

Microsoft hopes the agreement will boost the use of its search offering and in turn attract more advertisers to Live Search, said Angus Norton, senior director of Live Search for Microsoft. While advertisers say that they get good results by advertising on Live Search, they also say they are looking for a bigger audience, he said. "They're looking for volume," Norton said.

The arrangement is similar to one that Google Inc. and Adobe Systems Inc. have. As part of that deal, when users download Adobe Reader, they have the option to get the Google toolbar.

Microsoft also has distribution deals with computer makers Lenovo Group Ltd. and Hewlett-Packard Co. to preload Live Search tools on to computers.

In addition to the distribution deals, Microsoft is investing in ways to improve its search offering so that more people will want to use it. The company has also tried out some new ideas, such as offering rebates to users who buy products after searching for them on Live Search, through the Cashback program.

Despite its best efforts, Microsoft continues to lose search market share, primarily to Google. An August research report from Hitwise Pty. Ltd. showed Google with 70% of online search queries and Microsoft in third place with 5%. That's down from 10% for MSN in January 2007, according to Hitwise.