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(Continued)     The RFS Newsletter, Oct. 1st, 2005. Page 5
One of those destinations has been Google, which continues to vex Microsoft with its rollout of products and the much-rumored massive network it is constructing. An internal paper on the Google threat, constructed by MSN execs and seen by the Journal, said "Google threatens Microsoft's position on the Internet, and could potentially lock Microsoft out of its existing distribution channels and reduce the overall value of Windows." That document likely led to the recent reorganization of Microsoft's corporate structure, paring seven divisions to three. This week, Microsoft declared a dividend of 8 cents per share and announced a change to its corporate governance guidelines.

In unrelated news, Google reported on Wednesday an updated index and said it is more than three times larger than any other search engine. "We're celebrating our seventh birthday... We had a pretty strong year," Google Chief Executive Eric Schmidt said in a phone interview with CNET News.com. Schmidt listed the launch of new products including Google Talk, Google Earth, Google Video and Google Desktop Search. "And we've sort of been struggling here with respect to the index. It has always been much larger than the others."

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