Yahoo: $46 billion
Powerset: $100 million
Savings: um... 45 billion, 900 million. Not bad.
Microsoft is reportedly pursuing a purchase of Powerset, a 'semantic' web query engine that goes after searches in a different way than Google, Yahoo, or Microsoft. (Or AOL for Denny).
Instead of crawling the net searching for words, Powerset's search is by context and usage, not just the existence of the word. You may have seen this a long time ago by "Ask Jeeves", which attempted a similar thing, but without success. Basically, a plain language search engine that gave you results, not based on words contained, but based on the how the words were used.
It's not a new idea, but I don't think it has ever been done right. Maybe Powerset has the right idea, maybe not. $100 million for Microsoft to find out isn't a large payout.
Try
PowerSet search here. They're still in proving phase, so only Wikipedia is being indexed, which is the suck, but what can you do.
BusinessWeek More on Powerset