http://www.ft.com/cms/s/0/c6338b00-dddb-11dd-87dc-000077b07658.html?nclick_check=1
As reported by the Financial Times in the article linked above, Microsoft (MSFT) is again (or perhaps still) interested in Yahoo‘s search business (YHOO). Steve Ballmer, CEO of Microsoft, told the FT that the software company was not going to fully take over Yahoo, but it was going to get a search deal done with the world’s number two search engine. Both companies are currently going through changes in their management teams: Yahoo is looking for a new CEO and Microsoft now has Qi Lu, Yahoo’s former search chief, leading its online division. That would make it a perfect time for the search deal, said Ballmer.
I don’t want to go into the details of the ongoing negotiations between MSFT and YHOO, where even Google (GOOG) has played a role for some time, but I can say that after more than one year I’m actually tired of hearing the many rumors about Microsoft and Yahoo. I’m sure Google has been laughing all the time while slowly but steadily growing its market share in the online search and advertising markets. That’s why I can only hardly understand why Microsoft and Yahoo haven’t been able to get into a partnership, yet. Both companies are not in a position to compete with Google as of today, so merging or at least working together in some way would be the right decision for both companies.
It would also be interesting to know what influence the back and forth has had on Yahoo’s brand. I guess Yahoo has suffered a severe image loss since saying no to Microsoft’s offer to acquire the company for close to $50 billion in 2008 (Yahoo’s market value has since dropped to $17 billion). Following that were disputes with Yahoo’s CEO Jerry Yang and more negative press.
But I think that Balmer may have talked to Yahoo already considering that he has made the above public statements in a newspaper. Otherwise, I guess, he would have remained silent for the time being. Who knows, maybe the Microsoft/Yahoo deal is just around the corner? (Or that’s just wishful thinking of mine.)
I’m with you on this, Dominik. What the hell is the holdup? Isn’t it true when a company gets so bogged down being a corporate hodgepodge garden snail, they quickly lose their innovative edge? And that alone causes them all to quiver and shake and hesitate in making smart decisions to move forward and TAKE A CHANCE?
Name one corporation with their mutated 100 fingers in 100 pies that can keep their sh*t together and outgrow their competitors without cowering for six months in the fetal position under their desks. It’s like they all eat themselves from within.
Watch for some surprising news coming from the Google camp later this year.