MarketingVOX: Microsoft and Yahoo recently engaged in talks about banding together against Google – even discussing a possible merger, reports The Wall Street Journal.
The talks have concluded, but speculation about their potential outcome are just beginning.
Microsoft’s online division is suffering from a failure to compete with Google on search. They recently missed an opportunity to acquire online advertising giant DoubleClick, which was quickly snapped up by its Goliathan competitor. The talks with Yahoo preclude a company on the verge of big change.
Microsoft may be poised to change its executive roster or consolidate some units. It may also decide to repartner with Yahoo. Yahoo briefly provided search and ad technology on Microsoft’s behalf through its product Yahoo Search Marketing, formerly Overture. The relationship ended last year when Microsoft released a competitive offering, Microsoft AdCenter.
Yahoo’s may depend on “Project Panama,” a delayed upgrade to their ad system. The model could reportedly use Microsoft’s technical expertise; in another potential arrangement, Microsoft could manage the back-end of both companies while Yahoo handles the consumer end.
Despite the possibilities, however, Yahoo is reportedly uninterested in working with Microsoft.
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