Word on the street is that, in light of their latest loss to Google over Double Click and the new Google Apps (MS Office killer) and a possible Google OS beta to be released soon, Redmond is back in talks with Yahoo about a possible merger; even though the business advantages to this merger appear to be much weaker than at this time last year.
While Microsoft and Yahoo have held informal deal talks over the years, the latest approach signals an urgency on Microsoft’s part that has up until now been lacking, the newspaper said, citing sources.
The approach follows an offer Microsoft made to acquire Yahoo a few months ago, which Yahoo spurned… (source: Forbes)
Although these merger discussions are almost as elusive as el chupacabra, and are in no way confirmed by either party, many in the industry think that Yahoo, who was once very interested, may be getting cold feet [read:Hard to get?].
“They’re getting tired of being left at the altar,” said one banking source who has recently had talks with Microsoft. “They now seem more willing to extend themselves via a transaction to get into the game.” (source: NY Post)
This time however, Microsoft has pulled in some financial heavy weights to broker the reportedly 50 Billion dollar deal. That’s Billion with capital B.
The [NY Post] report values Yahoo! at $50 billion; the interest by Microsoft is said to be serious to the point that world renowned bankers Goldman Sachs are advising Microsoft on the deal.
If the deal comes to fruition, the takeover would be one of the largest corporate takeovers in American corporate history, and likely the largest ever in the Tech sector. (source: TechCrunch)
That last point begs the questions: how will this affect search and how will this impact the user? Google has 65% market share on search and Yahoo is a distant second with Microsoft steadily losing share, so a) how will this benefit Yahoo (aside from wheelbarrows full of cash) and b) if Yahoo is on the blocks, why wouldn’t Google be after them instead?
So is this real? Will there be a MicroHoo or an MS-Yahoo!? (or even a Yahoogle?) Well, the social networking community seems to think so. It’s page one in Digg as of this writing and Tech Crunch reports that Yahoo stock is up 18% as of this morning.
And all this comes on the heels of Yahoo CEO Terry Semel’s comments last year (when it would have made more sense for Yahoo to join Microsoft, before Microsoft developed its own ad program).
“My impartial advice to Microsoft is that you have no chance,” Mr Semel said. “The search business has been formed.” (source: Search Engine Land)
Whatever happens, the search landscape will be different, which is probably a good thing for the user and a bad thing for the SEM’s trying to keep up. What do you think?
