Microsoft has just acquired Madison, Wisconsin based Jellyfish, an e-commerce search engine. Jellyfish will most likely be integrated into the e-commerce features of Windows Live Search.
There’s also a social networking component of Jellyfish. The homepage displays a list of other shoppers who are online. And over 1,000 stores are accounted for under Jellyfish’s search results including Circuit City, Target, Home Depot, and Barnes & Noble.
The more that users shop on Jellyfish, the more cash they get back. Jellyfish shares advertising revenue with users as they spend more with certain retailers. Right now it is unknown whether Microsoft will continue to maintain Jellyfish’s advertising revenue-sharing model within Windows Live Search. The official announcement is expected to be made soon.
About a year ago, Jellyfish raised $5 million Series B funding from Kegonsa Capital Partners and Clyde Street Investments LLC. The company has about 20 employees and the financial details were undisclosed.
[Source: LiveSide]
