I think Microsoft is playing it safe. And don't forget everyone, that MSN Messenger is being used by as much x20 times the users of Facebook. Microsoft did the smartest acquisition in 1997 when they bought Hotmail and caught the train. What would it stop them from doing that again? I don't know. And what if they took PG's advice and their new move was his suggestion to buy all new startups?!

They introduced VS.Net and again they were able to provide services to the enterprise. Then it killed the Sony Playstation.

And to everyone who missed the point, I think thats what PG means with dead. They are not direct threat to someone starting-up --because their products are on the market which is the platform for accessing web services (Windows and IE), which web services is the new trend to bringing something of value to users), as much as Google is (because web services is their essential market) or another startup doing something similar.

I think MS will really worry when mobile devices become your desktop...But they seem to be catching up there too... Maybe that explains acquiring Tellme for 800 million few weeks ago...

But does anybody even remembers MS's attempt to make a video sharing site. Whats was its name? I can't even remember...