Now that the dust is settling after last week’s rumor of Google being in “late-stage” purchasing negotiations with Twitter, they’ve made news headlines yet again. It has been reported that Microsoft and Google are in conflict over striking a search-advertising deal with Twitter, who currently serves no ads. Interest in Twitter’s real-time search has not-so-surprisingly skyrocketed since it acquired third-party search app Summize. The outcome of the controversy remains to be predicted as Microsoft and Google are questioning the likelihood of Twitter maintaining its rapid growth.

Microsoft’s struggle with innovation on the web is an obvious one considering the fact that they’ve recently downsized Live Labs by some 50%. Is the bid over search-advertising on Twitter an attempt to seek alternative mediums for market leverage?