17 July 2009
After more than a year and a half of negotiating, an online advertising and search deal between Yahoo and Microsoft is starting to seem likely.
Steve Ballmer
Numerous business reports have surfaced recenlty indicating that a Microsoft and Yahoo partnership on search is "imminent."
Microsoft CEO Steve Ballmer said in May that there were still possibilities for Microsoft to work with Yahoo and "create a better search product."
In the past, Yahoo CEO Carol Bartz had expressed interest in an advertising and search deal but only if it involved "big boatloads of money."
Carol Bartz
Suspected conditions of the deal may include Microsoft shelling out close to $3 billion if it wants to assume control over Yahoo's search advertising business. Microsoft would potentially then share revenue from the search business directly Yahoo for any number of years.
If Microsoft is able to seal the deal, it will be grabbing close to 30 percent of the U.S. search market, which would more than triple its current share.
Sources from both parties have cautioned, that although a deal may seem to be on the horizon, there is still time for it to fall apart.
If, in fact, an agreement is reached soon as some analysts are predicting - a public announcement could come as soon as next week. Yahoo is supposed to release it second quarter results on Tuesday and any kind of deal with Microsoft will only help to boost investor confidence.
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