Bing Search Debut Reignites Yahoo, MS Merger Talk

Dennis Faas's picture

Yahoo is once again addressing partnership rumors with Microsoft, only this time adding more insight into what it would take for the two companies to strike an eventual deal: boatloads of money!

A few months back, a potential Microsoft/Yahoo partnership was suggested that would see the two mega-companies pool their resources in an attempt to lure away a percentage of computer users who use Google search. At the time, Microsoft CEO Steve Ballmer was pressing the issue, while Yahoo CEO Carol Bartz was honoring initial conversations, though nothing eventually came of these talks.

Microsoft's Previous Yahoo Offer: $47.5B

The "boatloads of money" Bartz was speaking of came after she was asked whether or not Microsoft would ever acquire Yahoo. The response was peculiar, seeing as how Microsoft had already offered to purchase Yahoo for an estimated $47.5 billion (a "boatload" to those of us living in the real world).

In hindsight, Yahoo would have been better off taking the money.

Yahoo Stocks Plummet after Rejected Deal

After Yahoo CEO (at the time) Jerry Yang rejected Microsoft, the market value of his company fell by two-thirds. While Yang eventually stepped down from his position, he did so having left the company at an estimated market value of about $21 billion (less than half of the Microsoft offer). (Source:

However, many believe that Yahoo is hardly in a position to make financial demands. This is because Microsoft has gone ahead without Yahoo, investing millions of dollars to create and advertise their own, new online search engine 'Bing'.

It seems a bit odd that while Microsoft is splashing their new Internet search campaign all across the media, Yahoo is attempting to buckle down and ride on their coattails into the "land of increased revenue".

Yahoo Seeks Strong Technology to Ensure Merger

Still, others can hardly blame Yahoo for looking out for number one in this economic crunch.

Yahoo CEO Carol Bartz has made it clear exactly what her company needs Microsoft to bring to the table if a partnership is ever to come to pass: the "right data" and strong technology. For Yahoo, the most advanced search data would lead to advertisement dollars and an all-around increase in corporate revenue. (Source:

Surprisingly enough, despite the recent fanfare that has surrounded 'Bing', Microsoft CEO Steve Ballmer has stated that he would still be interested in a search-related deal with Yahoo.

We will have to wait and see if this potential partnership is legitimate or just an updated rumor.

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