Google has made the headlines again this week with the news that the search engine has bought the Web-based word processor Writely from the Silicon Valley startup Upstartle.

In a blog entry on its website, Google said the deal was completed Monday, but didn't offer financial details.

The free service allows users with a web browser to compose and save word processing documents online.

The move by Google suggests that the next battle faced between it and Microsoft will be with its word processing application.

The move would also allow Google to offer a complete office package from images, to letters to websites if it were to bring the offering to market.

In a statement on the Writely blog the Claudia Carpenter one of the founders of the site comments that the becoming apart of Google is fantastic because:

“We'll be able to bring Writely to not just thousands but millions of users - the more, the merrier :-)"