> Microsoft was trying to expand it's dominance in software into new realms

I think it was more of a defensive play. Keep in mind that Microsoft saw the web as a threat. Gates was worried that the browser will undermine their OS monopoly (which it eventually did). Gates launched a bunch of web sites including Slate, HomeAdvisor, CarPoint, Sidewalk, Expedia, MSNBC and so on, and told the world that he didn't expect any of these sites to be profitable any time soon, which in my opinion, was intended to dissuade others from investing in the web.