The Microsoft and Yahoo Merger/Acquisition/Partnership issue

There has been a huge buzz around whether Microsoft had entered into formal talks to purchase Yahoo or even setting up a strategic partnership between the two companies.

Apparently these rumors have been going on for months and as expected, both Microsoft and Yahoo have refused to comment on the issue. I’ve been doing some reading and many sources say that those talks are not currently active.

However, it remains an interesting discussion on whether Microsoft and Yahoo may still look into other forms of “cooperation” between them. If such talks exist it will mainly be in an effort to form some sort of joint venture to compete with Google.

We all know that Google is the “Big Gun” or “kahuna” and rivals Yahoo and MSN will do anything to de-throne Google from it’s current top position in Search.

Should these two companies work together in forming a search advertising coalition (combining the forces of MSN adCenter and Yahoo Panama), it would certainly be a powerful search marketing solution which could rival Google AdWords in usability and challenge Google in Web reach.

If that day does arrive, it would surely be the biggest news of the millennium.

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