Danny Sullivan writes that Microsoft is behind with the core search technology & Yahoo's been struggling to upgrade its paid search service and there’s a strong case to get these two kids together!
The WSJ reports that a Microsoft, Yahoo Tie-Up was actually thought of – atleast by a faction within Microsoft. Danny thinks that apparently it's plausible enough that both companies have talked informally over the past year. The WSJ reports that people familiar with Microsoft say its top management remains open to a deal with Yahoo as pressure grows to perform better against Google. After all this news was doing the rounds sometime back. There seems to be two factions within Microsoft - the "let's built it ourselves" group that has been in control so far and the "let's acquire" group apparently led by Microsoft senior vice president Hank Vigil. I agree with Danny that a Yahoo deal makes more sense than the failed AOL deal. AOL would have provided existing traffic but not solid search technology. Yahoo provides plenty of traffic, along with core search technology and a healthy, first-hand advertiser base. Microsoft appears to be falling farther behind Yahoo and Google
There has been suggestions to spin off MSN . Microsoft has definitely got to show increased revenue from its online business to meet market expectations.As I see it, while Yahoo & Microsoft prepare themselves for launching their next series of "Google-killer" / new product announcements, Google is moving much faster – in the process getting more traffic, eyeballs gaining a resultant market-share and reporting increasing revenue. I generally do not think high of big company mergers but in this case, I do think that its time for these two to think in terms of coming together and leverage the complementary strengths. I mean leveraging complementary strenghts and not microsoftizing yahoo, if yahoo gets taken over - in that case potentially we shall see the combined entity failing faster than had they remained separate.
Category :Emerging Trends