Microsoft/Yahoo Merger to Take on Google?

Mz6 writes "One faction within Microsoft is promoting a bold strategy in the company's battle with Google: Join forces with Yahoo. That would be a major departure for Microsoft, the software maker that is legendary for toiling on its own until it captures a new market. However, people familiar with the situation say that Microsoft has considered the idea of acquiring a stake in Yahoo, and that the two companies have discussed possible options over the course of the past year. Currently, talks of an equity stake in Yahoo don't appear to be active, given that Microsoft is focusing on a reorganization that it hopes will re-energize its effort to compete with Google. Two wild cards remain: Steve Ballmer, who has historically shunned large acquisitions, and Yahoo co-founder Jerry Yang, whose support would be key to bringing the necessary Yahoo shareholders on board for a deal. Mr. Yang and others in Yahoo would be hard-pressed to sell to Microsoft, people close to the company say. However, people familiar with Microsoft say its top management remains open to a deal with Yahoo as pressure grows to perform better against Google. The increasing pressure on Microsoft -- not just from Google, but also from its own shareholders, as well as from advertisers that want an alternative to Google -- could help to justify the acquisition or some kind of business collaboration, these people say."

Comments

It's a Trick!!!

[sesshomaru]

As Ash would say, "It's a Trick!!!" When Microsoft goes to companies and says, "Hey, why don't we make a strategic partnership against our common enemies?" they actually mean, "Hey, we'd like to steal your technology and run you out of business."

Farewell, Yahoo! a flight of angels sing thee to thy rest!

New Name

[MikeMacK]

Yeah, they could call themselves Ya'soft - they could sell Viagra too.

Re:New Name

[KingJoshi]

I guess we should be thankful Microsoft didn't join forces with Nintendo in the console business. They would've released Micro Wii.

Ballmer hears a Yahoo

[Billosaur]

Two wild cards remain: Microsoft Chief Executive Steve Ballmer, who has historically shunned large acquisitions, and Yahoo co-founder Jerry Yang, whose support would be key to bringing the necessary Yahoo shareholders on board for a deal. Mr. Yang and others in Yahoo would be hard-pressed to sell to Microsoft, people close to the company say.

I can't see this happening, precisely for this reason. Ballmer's ego wouldn't let him co-exist with Yahoo and Yang wouldn't be caught dead letting Ballmer in the building. Eventually it comes down to which one would flinch in a staring contest, but I suspect they'd both go blind before agreeing to work with the other.

Re:developers!

[PinkyDead]

Ballmer: I'm gonna fucking kill Yahoo!
Shareholders: No, Steve - "Merge With"
Ballmer: (Confused Expression) Er-ugh...
Shareholders: M-er-ge w-i-th
Ballmer: (Picks up chair - smiles)
Shareholders: No, Steve - M-eh-her-ge w-i-i-th-h.

Re:Google = Dead Engine Walking

[Whiney Mac Fanboy]

hahahahaha - this is bigtallmofo's comment in 1986:

With apologies to all the microsoft fans out there, the software industry has changed the preferred O/S vendor several times in the past and it will change it again.

Just about every O/S company has now recognized microsoft for the threat it is and has declared an all out war against them. Basically, it's microsoft against everyone. In such cases, everyone usually wins. Unfortunately for microsoft, they should expect many more actions like IBM PC's being distributed with PC-DOS by default.

Sorry, microsoft - it was fun while it lasted.