The Web According to Ballmer

Microsoft CEO Steve Ballmer chats with BusinessWeek editors about Web 2.0's sky-high valuations and the new competition the company faces

Even the people running the richest tech companies are awestruck by Web 2.0 valuations. Microsoft (MSFT) boss Steven Ballmer, who sat down with BusinessWeek editors and writers hours before Google (GOOG) finalized its $1.65 billion purchase of YouTube, questioned how the online video service could fetch so much. He also talked about Microsoft's video-game and digital music business, as well as the new breed of competition the company faces. Here's an edited transcript of the conversation.

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