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Report: EU To Approve Microsoft-Yahoo Deal

Thumbs up supposed to come in one week

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The proposed Microsoft-Yahoo search partnership may soon be approved by one set of regulators, at least.  A new report indicates that the European Commission will give it a green light one week from today.

We should note that this isn’t a sure thing; according to Reuters, an unnamed person who’s "familiar with the situation" just said, "I expect clearance without any concessions next Friday."  Still, that statement indicates a fair level of confidence, and Reuters doesn’t tend to run groundless rumors.

So on to the ramifications.  European approval will of course represent a major win for Microsoft and Yahoo; being told that they couldn’t do business together in the European Union’s 27 member states would make any deal much more complicated.

European approval also takes on special significance because the European Commission has been hard on Microsoft in the past, fining it $1.4 billion on one occasion.

Then here’s one last, completely speculative, thought: approval of the Microsoft-Yahoo deal might even mean that the European Commission has started to worry about Google’s dominance and wants to clear the way for a competitor.

We’ll see what happens.  The official deadline for a decision is indeed in one week’s time.

Report: EU To Approve Microsoft-Yahoo Deal
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  • http://www.seo-theory.com/ Michael Martinez

    Approving a deal that is sure to result in the death of the Yahoo! brand without substantially increasing Microsoft’s ability to compete with Google doesn’t make it sound like the European Commission wants to see a Google competitor step up to the plate.

    But perhaps they just don’t understand that search brands die quickly after these types of deals are enacted.

    Those who don’t learn from history are doomed to repeat it. I think it’s pretty obvious that Carol Bartz is driving Yahoo! toward a completely different business model. She apparently believes that only another mediocre media portal can succeed in today’s heavily overcrowded media portal industry.

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