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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.

About the author

Mathew 2420 posts

I'm a Toronto-based senior writer with Fortune magazine, and my favorite things to write about are social technology, media and the evolution of online behavior

8 Responses to “Microsoft to Yahoo: I just can’t quit you”
  1. 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.

    • 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.

  2. […] MSFT and YHOO flirting […]

  3. 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.

  4. hi matt,

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

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

      • 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

  5. 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

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