• Bloomberg, Wednesday, July 23, 2008 11 AM

With its failed bid for Yahoo behind it, Microsoft is promising to re-invest that cash in its Web operations. CEO Steve Ballmer says he plans to spend hundreds of millions of dollars to fix the company's unprofitable Internet business. But investors have their doubts.

Some Microsoft backers are losing faith in Microsoft's capacity to manage its Internet business in the wake of the Yahoo failure. Ballmer needs to "put a hot, bright light of clarity on where's all the money going," said one major investor.

Microsoft, the world's largest software maker, has lost about $90 billion in market value this year as Ballmer vacillated on Yahoo and failed to show how he would crack Google's dominance of Internet advertising. Shareholders will look for ideas at a meeting with Ballmer Thursday.

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