By Jim Connolly
It’s back on again – Microsoft are talking to Yahoo! Just two weeks after their bid to buy the search giant broke down, the will-they-won’t-they saga took another turn on Sunday, when Microsoft announced on it’s website that talks had restarted. However, unlike before Microsoft are saying that the new deal will not be an all-out takeover!
A statement on the Microsoft website reads;
“Microsoft is considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo.”
It goes on; “”In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business.”
The internet is alive with speculation, as to what this alternative offer might be. Rory Cellan-Jones at the BBC’s dot.life blog considers the option of MS just buying Yahoo‘s search division. However, he makes the point that if such a deal is brokered; “Yahoo will be left as a shell if it hands that over – so it might as well just negotiate a decent price for the whole kit and caboodle.” It’s hard to disagree. You can read his full post by clicking here.
So, will Microsoft go for a joint venture or perhaps a minority investment? It’s hard to say and even the expert analysts are split on what they think will happen and whether it’s a good deal for either party or not.
Google is developing a near monopoly in search advertising and something certainly needs to be done to make the marketplace more competitive. It remains to be seen if a new deal between Microsoft and Yahoo will bring us a genuine competitor or not.
