Bill Gates claims Google is the only serious contender in the search engine market and Microsoft will invest heavily to boost its web search engine, even if it fails in its bid to acquire Yahoo.
Microsoft chairman Gates said Microsoft needs a bigger presence to create a more competitive and profitable web-search business.
"We can afford to make big investments in the engineering and marketing that needs to get done. We will do that with or without Yahoo," Gates told Reuters.
"But we also see that we'd get there faster if the great engineering work that Yahoo has done and the great engineers there were part of the common effort," added Gates.
Microsoft made an unsolicited $44bn bid to acquire Yahoo and claimed it was a "full and fair" offer. However, Yahoo's board rejected the offer saying it substantially undervalued the company.