Microsoft Starts Merging Talk With Yahoo

To Compete with Google, Both Microsoft and the Yahoo started merger talk. According to The New York Post Microsoft asked yahoo’s business for $50 Bn .?Both of the companies suffered huge losses in last few years. According to some news Microsoft has technical expertise that might benefit Yahoo!, one of the world’s most popular websites and capable of attracting millions of consumers a day. Last year, Yahoo! suffered because of its failure to convert to a new online advertisement system that was designed to close the gap with Google. So far, that system, which was codenamed Project Panama, has not boosted the company’s revenues. In addition, Yahoo! is facing increased competition to sell advertisers the graphical display ads that have been a large source of its income.

?Meanwhile, a merger could help Microsoft confront the key challenge of attracting advertisers to its online businesses. While the company has been working for the past few years to develop the technical ability to broker online advertisements, it has failed to attract sufficient business.

The two companies declined to comment on the reports yesterday. A spokesman for Yahoo! said: “We don’t discuss market rumors or speculation.” Analysts said that such a merger could yet be blocked by senior executives at Yahoo!. Co-founder Jerry Yang has a reputation of disliking Microsoft, even to the extent of avoiding using its products. Senior staff might also consider leaving if a takeover triggered a divestment of their stock options with the company. But I think that both of the companies already started merging as their IM Clients together which was big news for IMing world.

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