Analysts: Microsoft likely eyeing Yahoo search assets
January 6, 2009 nnyq.com editAlthough Microsoft provided no details Sunday about what deal it might cut with Yahoo, it seems highly likely that search advertising would be a major piece.
Search advertising continues to be the largest segment of online advertising and is the fuel that has propelled Google's revenue and profits to levels that have made Microsoft green with envy. "There's got to be some search component to the deal," said industry analyst Greg Sterling of Sterling Market Intelligence.
What shape the tie-up might take is anyone's guess. It could be some sort of joint venture in which the companies pool assets and create a larger ad network, Sterling said. Or it could be an agreement for Yahoo to outsource part of its search advertising business to Microsoft, along the lines of what Yahoo has reportedly been negotiating for weeks with Google, he said.
What's clear is that since Microsoft withdrew its offer to buy Yahoo for $33 per share on May 3, Yahoo's management and board have been bombarded with complaints from shareholders.
[ For the complete saga of Microsoft's unsuccessful bid to take over Yahoo, check out InfoWorld's special report ]
