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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."
Summary is a troll - there is no mention of a 'merger' in the article text, just cooporation
Here is the article, so you don't have to sit through the silly flash into:
A Microsoft, Yahoo Tie-Up?
MSN Veterans Want a Pact
To Bolster Web-Search Ads
And Better Challenge Google
By ROBERT A. GUTH and KEVIN J. DELANEY
May 3, 2006; Page C1
One faction within Microsoft Corp. is promoting a bold strategy in the company's battle with Google Inc: Join forces with Yahoo Inc.
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, the fast-growing provider of search services and advertising.
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.
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.
Since 2004, Microsoft has invested heavily to better compete with Google but it has yet to boost its share of search or online advertising. At the same time, Google has released products that some industry experts say could over time eat into Microsoft's core software businesses.
Microsoft executives say that they are investing for the long haul, and that the online-search market is still nascent and has much room for growth. A Microsoft spokesman declined to comment. A Yahoo spokeswoman declined to comment, saying the company doesn't discuss "rumors and speculation."
In one sign that Microsoft may be serious about major acquisitions, it has hired search-industry executive Steve Berkowitz to head MSN, the Internet unit that is building the Web-search business and is leading Microsoft's charge against Google, including Web search. Mr. Berkowitz, the former chief executive of search site Ask.com, is viewed as a likely deal maker at MSN, having completed more than 40 acquisitions in his career, according to a person close to the matter. He starts May 8. Mr. Berkowitz couldn't be reached for comment.
Microsoft's recent quarterly results provided a picture of the pressure it faces from Google. On Thursday, Microsoft said the MSN unit fell into the red and its revenue declined. Those numbers show it is failing to capture the same online-advertising tail wind that is helping Google. By contrast, Google's first-quarter net income rose 60% from a year earlier to $592 million. U.S. online advertising generally rose 30% to $12.5 billion last year, according to the Interactive Advertising Bureau trade group and consulting firm PricewaterhouseCoopers.
Microsoft executives also said they will need to boost investments in online businesses in the next fiscal year to levels far higher than Wall Street had expected. That prompted an 11% selloff of Microsoft shares Friday. The stock has ticked lower this week. In 4 p.m. Nasdaq Stock Market composite trading, shares fell 1.2% to $24.01, after hitting a 52-week low during the day of $23.90.
At its core, the clash between Microsoft and Google centers on Microsoft's attempt to build up its We
There are shills on slashdot. Apparently, I'm one of them.
If I remember correctly, Yahoo! search engine used Google technology.
Dunno if I buy that. See:
http://dondodge.typepad.com/the_next_big_thing/200 5/10/microsoft_will_.html
"QDOS became MS-DOS, ForeThought became Powerpoint, SoftDesign became Microsoft Project, Vermeer became FrontPage, PlaceWare became Live Meeting, Vicinity became a key part of MapPoint, nCompass Labs became Content Management Server, Bungie Studios became Halo, HotMail, Visio, Great Plains, Groove Networks"
Or...n dows/story/0,10801,78739,00.html
m ar05/03-10GrooveQA.mspx
o soft-sybari.html
http://www.computerworld.com/softwaretopics/os/wi
http://www.microsoft.com/presspass/features/2005/
http://www.networkworld.com/news/2005/021405-micr
I don't believe the search issue with IE7 is non-changeable, just that the default is set to MSN. Microsoft would then have a stranglehold on users who are too inept to select their own search engine....
Stop by my site where I write about ERP systems & more
Which is exactly how it is in IE6, so how is that any different from right now? Answer: It isn't.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
What new Markets has Microsoft captured exactly? IIRC, most of their attempts to go beyond their core competence have been costly failures.
Hmmm, I'll take a stab at that: IDEs (Visual Studio is the standard - there is not even a close second), Office (ditto, the "competitors are so far in the rearview mirror it isn't funny), Browsers (85% market share - yah, I know, monopoly), Small Database Servers (>50% market share), Smartphones (leading and getting stronger), Handhelds (remember Palm?), XBOX (ok, they're second here, but it's early yet and they have momentum), Content delivery (most of the digital music services run MS backends and use MS codecs and DRM). I won't mention OSes (90+% desktop share, ~50% server share) because arguably that is their core competence. Add to that, MSN is competitve, they have a nice hardware business - their keyboards and mice do very well thankyou, they are a player in the home finance business (MS Money), they are competitive in the home digital darkroom market (ok, on the low end, but they enjoy good volumes here), and they have a number of successful gaming titles.
I really think it is a gross exageration, or wishful thinking, to say that they have had nothing but costly failures.