Friday, May 04, 2007

Microsoft, Yahoo Reconsider Merger - WSJ.com

More potential Google stimulus/response actions... 

A year ago, Microsoft Corp. and Yahoo Inc. explored the idea of combining to form a greater competitor to Google Inc.

The talks led nowhere leaving Microsoft and Yahoo to forge their own paths in pursuit of Google. How did they do? Well, they're talking again.

In what appear to be early-stage discussions, executives at Microsoft and Yahoo are taking a fresh look at a merger of the two companies or some kind of match-up that would pair their companies' respective strengths, say people familiar with the situation.

The renewed talks are a sign of the continued growth in Google's power and problems over the past year with in-house efforts at Yahoo and Microsoft to ride a boom in Internet advertising. Meanwhile, management changes at both companies could help pave the way for a pairing that a year ago couldn't happen. The talks were first reported in the New York Post.

Source: Microsoft, Yahoo Reconsider Merger - WSJ.com

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