First of all congrats to Jason Steinhorn on his hard work and foresight (two of the most important ingredients of success) at Tellme.
I remember Tellme from the dot com days as one of those companies with insatiable desire and ability to raise money. In many ways it had more hype than substance in the intial stages (anyone remember the “voice web”?) but unlike most of its brethens, it slowly executed towards its vision (while the positioning has changed to reflect the latest buzz words, it has stayed surprisingly faithful to its original vision). Can’t say that about too many companies of that era . . . many of which eventually lost its way amongst all that cash.
Anyways, this is a big win for MSFT. (stock was up big today!). Instead of fighting Google at its own game, algorithmic web search, there are entirely new battlefields being born that are more wide open. . . voice, local, text, j2me and their intersections . . . mixing multiple input and output channels are what really made Tellme cool . . . smart buy for the guys up north . . .
(BTW, I hope eBay took a hard look at this deal . . . search is way too important to leave to the usual players)





Agree, congrats to Tellme for being able to weather the downturn and find a happy ending. Is this such a great win for Microsoft though? They’ve been working on voice for well over a decade, and instead of delivering a great app out of that research, they spend $800M on a startup.
Comment by Albert — March 15, 2007 @ 9:57 am
very true, good win on acquisition, bad win on internal development . . . BTW wasnt Lee Kai Fu working on a voice product at MSFT before leaving for GOOG? hmmm . . . did it tank cause he left?
Comment by will — March 15, 2007 @ 1:52 pm
anothing . .. tellme is mostly nuance isnt it? so most of the technology is somewhat of a commodity? Why dont MSFT buy Nuance instead?
Comment by will — March 15, 2007 @ 1:54 pm
Lee Kai Fu led voice research in China. I don’t know how much of it was development-focused. I doubt his leaving really led to the deal. MSFT probably still has better voice tech, but Tellme obviously has found an attractive app.
Comment by Albert — March 20, 2007 @ 1:39 pm