The Wall Street Journal reports that Microsoft is trying to position itself for a new run for Yahoo’s search business. Microsoft has approached other media companies, asking them to join it in a deal that would ultimately lead to the acquisition of Yahoo.
According to the article, Microsoft has already been in talks with Time Warner and News Corp. As it seems, Microsoft only has an interest in Yahoo’s search engine business and therefore needs another party that will continue Yahoo’s other business units after a breakup. Time Warner’s AOL or News Corp.’s MySpace are be possible partners.
This new attempt at acquiring Yahoo once again shows just how desperate Microsoft is to get into web search big time, which would instantly push Microsoft to the number two spot behind Google in terms of web searches. And Microsoft really needs YHOO’s search business, because otherwise they might never be able to catch up with market leader Google. From my neutral point of view I would say that, despite a possible merger with Yahoo, they might never be able to catch up in any case.
You know, I love Google. I use their search engine and many of their other products, but I still believe that more heated competition will lead to more innovation and more advances in Internet technology in the long run. That’s why I’m still somehow keeping my fingers crossed for MSFT to successfully buy Yahoo.
Google is so successful on the Internet today, it can easily be compared with Microsoft’s market position in the software business. At some point, however, Microsoft has fallen behind with innovating, which they now try to make up for by heavily investing in this space, and I hope the same won’t happen to Google. Higher competition could drive and further motivate Google, or any other company in the search business, to innovate and provide enhanced products not only today, but in the future too.
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