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May 5, 2006 10:32 AM

What, Exactly, Is Microsoft Spending on MSN in 2007?



As is well-documented by now, Microsoft's vaguely explained spending plans for fiscal 2007 raised some Wall Street analysts' hackles last week. This week, Microsoft CEO Steve Ballmer attempted to calm company watchers further, by disclosing more info on what Microsoft is expecting to spend on MSN in the coming year. "Our R&D spend just in our online MSN area has gone from a 500 million in our fiscal year '05 to a projected $1.1 billion in our fiscal year '07, which starts July 1," Ballmer told attendees of the MSN Strategic Summit on Thursday. The company is growing its capital expenditures, a portion of which will go toward beefing up MSN infrastructure, from $300 million in fiscal 2006 to $500 million in FY 2007.

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