Microsoft / Yahoo rumour back again

January 10, 2008

The perennial rumour of Microsofts impending acquisition of Yahoo has resurfaced in an article in the NY Post today. I last posted on this in September. See the last line of this NY Post article for the hint supposedly from an insider at MS, apparently the deal is still being debated at Microsoft.

I’m actually less unconvinced than I was about this rumour now. Microsoft are still failing to build the traction around their MSN portal and get significantly less browse traffic than Yahoo and have significantly less advertising real estate available to them. They are also lagging behind in search (although that could change soon). Yahoo would still be a great buy for them, and instantly propel them up the charts in terms of eyeballs and ad clicks.

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