Google Inc confirmed on Thursday that it had acquired Writely, an online word processing tool through its takeover of the parent company, Upstartle. This move is being seen as a direct challenge to Microsoft since Writely operates in much the same manner as Microsoft Word, but in a browser online.
Google said that deal was formally completed on Monday, but did not disclose the financial details. "Yes, we've been acquired by Google. We haven't yet figured out all the details," said a blog entry by Writely co-founder Claudia Carpenter.
“Some people didn't feel comfortable trusting a tiny startup with their documents... and we're no longer a tiny startup. Coming to Google will eventually give us a leg up on getting things done that we just haven't been able to with our tiny team."
The Mountain View, California-based Company also confirmed the deal through a representative, "We acquired Writely for the innovative technology and talented team. We're thrilled to have them here." Google also said that Writely was still in beta although there was a waiting list of people wanting to use the product.
Upstartle had launched Writely in August last year. The company has added a "Save PDF" feature to its product, which it says will eventually be made available for a premium after the beta testing period is over.
There has been speculation that Google will launch a service to rival Microsoft Office and this acquisition only serves to heighten that speculation. Microsoft though is not wilting under pressure-yet.
"Microsoft Office is the clear leader in what has always been a very competitive space," said a statement issued by Erik Ryan, senior marketing manager at Microsoft. "We welcome competition in the marketplace and believe it is healthy for the industry as a whole and good for customers." The company also noted that more than 400 million people use the Office products across the world.
