Microsoft, Yahoo Search Deal Likely

Announcement may come next week

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Microsoft and Yahoo are close to reaching a deal on search and online advertising after more than a year and a half of negotiations.

A number of reports have surfaced indicating a Microsoft partnership with Yahoo on search is "imminent."

Steve Ballmer
Steve Ballmer

In May Microsoft CEO Steve Ballmer said there were still possibilities to work with Yahoo to "create a better search product."

Yahoo CEO Carol Bartz has expressed past interest in a search and advertising deal if it involved "big boatloads of money."

Terms of the deal could include Microsoft paying around $3 billion to take over Yahoo’s search advertising business.  Microsoft would share revenue from the search business with Yahoo for a number of years.

Carol Bartz
Carol Bartz

If Microsoft were able to close the deal it would grab about 30 percent of the U.S. search market, more than tripling its current share.

Sources on both sides have warned, that although a deal of some sort is close to being reached it could still fall apart.

If an agreement is reached an announcement could come as early as next week. Yahoo is scheduled to release it quarterly results Tuesday and any deal with Microsoft would only help to boost investor’s confidence.

Microsoft, Yahoo Search Deal Likely
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  • http://www.what-is-thrush.com phcreative

    Awesome :)

    Go Microsoft!

  • http://www.nerddesigngroup.com nerddesigngroup

    Google has basically owned most of the search engine market for about – what ten years now? Don’t big dogs usually buy up small dogs and then the two or three just below merge in every business? This is inevitable as the two can’t compete with what they have alone, but together they may be as great as GM and Chrysler.

    • http://wheelchairsabound.com Shasme

      Does anyone know anything about the “Leapfish” Search Engine? I bought into their “Internet Real Estate” marketing because I liked the concept; but I have regrets already. I wish Google would buy them too. I might stand a better chance of getting traffic to my website. I was recently told by another marketing salesman that Leapfish.com is still running in “Beta” mode. What does this mean? Any feedback would be appreciated.

      • Guest

        I doubt that Google, or any other serious company will ever buy LeapFish.com. There is simply too much of bad karma associated with LeapFish.com, it’s founder Ben Behrouzi and his former startup ePerks.com.

  • http://www.laokay.com Steve

    We all knew this was coming. It was just a matter of how much it would cost and when it would happen.

  • Eric Kotonya

    Everyone else seems to have new stuff out in the market, and new stuff planned for 2010 – everyone except Yahoo. There is Bing and Android now, and soon Google Wave, Google OS, Microsoft Windows 7 and Mobile 7!

    3 billion USD is a lot to pay for a business that is not in the top 2 in market share, and further down in innovation.

  • http://bestsurfer.blogspot.com/ drmartyr

    A healthy competition is always great.Keep it up Microsoft.

  • http://www.tag44.com Tag44

    Best of luck to Microsoft but i don’t think that it will really affect Google at all.

  • http://www.dogcarseatsreview.info dogcarseats

    Its too bad the deal never went through. Google does need some competition

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