Microsoft and Yahoo talks heating up

by Dan Leahul, revolutionmagazine.com 05-May-09, 15:40

LONDON - In their ongoing courtship, talks between Yahoo and Microsoft are said to be entering a new level of intimacy, with sources claiming the two sides are close to a search and advertising partnership.

Initial details speculate that Yahoo would be willing to expand its search and display advertising sales across Microsoft's network, while Microsoft would take care of behind the scenes tech work.

It is not clear whether Microsoft or Yahoo would be adverse to content sharing across their sites, but the partnership would favourably position both companies to take on Google, which owns a lion's share of the search market.

The two companies have been 'on-again, off-again' for the past year, when former Yahoo CEO Jerry Yang called off the marred arrangement in May.

With Yang out and new CEO Carol Bartz in, talks of the rumoured partnership are reaching a fevered pitch, with news that both sides are using small teams to hammer out minute details.

Microsoft CEO Steve Ballmer, who has previously downplayed interest in Yahoo, is presently in Silicon Valley due to speak at entrepreneurial event on Wednesday, although it is unclear whether Ballmer has met with Bartz.