Microsoft Renews Talks With Yahoo!, Discusses Partnership

After failed merger talks between Microsoft Corp and Yahoo Inc last year, talks about partnership possibilities have resumed between the two companies. Microsoft CEO Steve Ballmer met with Yahoo’s new Chief Executive last week, although spokespeople from both companies have declined to comment on the extent of the conversations.
Both companies are seeking to compete with Google, which controls roughly 60 percent of the search and online advertising market. An advertising alliance with Yahoo, which owns roughly 20 percent of the space, and Microsoft, which owns a stake in the social network Facebook, may give the companies a more competitive edge in the market.

According to the Wall Street Journal,

Microsoft and Yahoo also are each discussing content-sharing agreements with Demand Media, which operates niche Web sites and publishes and syndicates articles and videos, according to one person familiar with the talks. Yahoo sells display, or graphical, advertising for Demand Media and has had discussions about a deeper partnership for months. Talks between Demand and Microsoft have heated up recently, this person said.

Yahoo and Microsoft, both seeking better ground in the search and online advertising market largely controled by Google, have been in discussions for a possible alliance for at least a year. In early 2008, Microsoft made a failed bid to buy Yahoo for $44.6 billion.

BY Julie Wohlberg, Editor

© 2009 NND Media Network.



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