In line with my expectations (ref. to my blog post on May 4th 2008 – Microsoft walks away from Yahoo deal) that walking away from the deal was just a temporary ploy adopted by Microsoft, major news papers have today reported that Yahoo and Microsoft have resumed talks in the wake of a shareholder rebellion launched by billionaire investor Carl Icahn.

However, this time the discussions are focusing on a deal short of outright acquisition. Microsoft announced the discussions in a brief statement that it made on Sunday.

The press reported that Microsoft was proposing an arrangement focused only on Yahoo’s search advertising business.

Makes sense doesn’t it? They need to compete with Google and its Adwords program and Microsoft’s Adcenter isn’t really doing too well.

Well, I guess it promises to be a long, exciting and complicated battle, but I still week Microsoft may get Yahoo in the end.

Tags: Search Advertising, Yahoo

This entry was posted on Monday, May 19th, 2008 at 5:01 pm and is filed under Pay Per Click, Search Engine News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.