Microsoft to Yahoo: I just can’t quit you

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Well, looky what we’ve got here: multiple rumours that the Microsoft and Yahoo talks are back on, although whether Microsoft is interested in an all-out acquisition again or just a search deal depends on whose sources you believe: Mike Arrington says the former and Silicon Alley Insider says the latter. I hate to say that I told you so, but… oh, who am I kidding — I love to say I told you so. Well, I told you so (Note: Kara Swisher of All Things D says that the latest rumours appear not to be true).

In any case, whatever the truth of these specific rumours, I — like Kara — continue to believe that a Yahoo purchase makes sense for Microsoft, and that the two should talk. And I think that the longer Yahoo’s stock price remains under pressure (which it seems likely to do, given all the executive departures and general deck-chair rearranging that is going on) the more the software behemoth will want to own it and the more likely a deal becomes.

Comments (7)

  1. DC wrote::

    Microsoft could instantly give google a run for the money. This is a perfect fit if they could just get a deal done. It makes so much business sense. I have no chips in this pot, but it sure would give microsoft a huge lift in the global search business instantly. Something you just can't grow from scratch. I wish the best of luck to both msft and yhoo. Steve and Jerry, do the deal its the right thing to do for both companies.

    Tuesday, June 24, 2008 at 9:12 pm #
  2. VincentClement wrote::

    I've never laughed harder after reading your post. Yahoo and MSN combined have almost 28% of the search market versus the 66% Google has (according to Hitwise).

    Don't forget that Yahoo has a much bigger share than Microsoft in the search market. The only way I see this deal having a sliver of hope is MS dumping MSN and handing over the search business to the Yahoo people. And I just don't see that happening.

    Wednesday, June 25, 2008 at 7:33 am #
  3. Paul Marshall wrote::

    My opinion: I have to agree with Michael on this one, this deal will get done, just a matter of when and how much. MSFT wants this. As Vincent points out even with Yahoo MSFT is still a ways away from challenging Google but without it they aren't even in the same game.

    Wednesday, June 25, 2008 at 10:03 am #
  4. sam gaulois wrote::

    hi matt,

    minor correction on your post. silicon alley was only reposting the story about the partial buyout. cnet originally broke that story

    Wednesday, June 25, 2008 at 4:25 pm #
  5. mathewi wrote::

    Thanks for the comment, Sam — but SIA's post makes it clear that they heard the same thing from their own source.

    Wednesday, June 25, 2008 at 4:29 pm #
  6. sam gaulois wrote::

    hi matt,

    well, i'm one in favor of free linking and crediting sources who break stuff. that's the way of the web. in this case, cnet beat `em to it so kudos. Not dissin' silicon alley…i like their stuff as well

    Wednesday, June 25, 2008 at 10:10 pm #
  7. sam gaulois wrote::

    hi matt,

    well, i'm one in favor of free linking and crediting sources who break stuff. that's the way of the web. in this case, cnet beat `em to it so kudos. Not dissin' silicon alley…i like their stuff as well

    Thursday, June 26, 2008 at 2:10 am #

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