Microsoft and Google sign agreement to buy mobile search software

By RICHARD GROSSEMAN, Reuters Microsoft Corp, Google Inc and mobile search provider Mobikwik have agreed to buy an advertising network, a source familiar with the matter said on Tuesday.

The transaction, which is subject to regulatory approvals, would give Microsoft a major platform for building and managing its ad sales platform.

The deal would also give Google an advertising partner that could work with its mobile search service.

The acquisition is part of a $7.5 billion acquisition deal that also includes Microsoft’s cloud computing and mobile applications businesses.

Microsoft’s new mobile search business is focused on driving more people to its services, including Office 365, Windows, and Skype.

It would be the largest such transaction in the company’s history.

The company has a combined revenue of $1.2 trillion, with Microsoft’s software business accounting for $6.9 billion.

Google, which owns a large share of the search market, has $1 trillion.

The two companies are currently under investigation by the Federal Trade Commission over allegations of anticompetitive behavior.

The FTC has filed charges against Microsoft, alleging that the company paid to buy back shares from rival ad networks, but those claims have not been proven in court.

The agency has been seeking to get Microsoft to sell more shares in its ad services.

Microsoft shares fell 2.3 percent to $38.80 on the Nasdaq in New York.

Google shares rose 0.8 percent to close at $59.50.

(Reporting by David Beasley in New Orleans; Editing by Richard Chang)