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MSN is being harmed by Bing, the in-house rival

According to several executives close to the company, the chief executive officer of Microsoft Corporation since January 2000, Steve Ballmer's ambitious efforts to grow Microsoft's Bing search engine is harming the existence of sibling portal business MSN.

Microsoft's use of its popular portal MSN as a traffic driver for Bing is compromising some of MSN's partner relationships, hurting internal sales staff and spoiling the company’s revenue.
The Post reports that "During the past quarter the mix of MSN headlines on its front page that push readers to Bing has grown from 20% to 50% and is set to grow further." AdWeek wrote, "several high-profile MSN partners are feeling shafted by Bing hogging prime real estate on the MSN home page."
About a year ago Microsoft said that about half of Bing's query volume was being driven by MSN.
According to a spokesman of Microsoft, "We're constantly making different bets to see how things play out. We're doing programs that go from MSN to Bing. We're experimenting with new landing pages."

When asked about people who're unhappy with the changes, he said: "We're triaging those things all the time. We're happy the audience is growing."