Yahoo (YHOO) Microsoft (MSFT) Once Again Hold Talks About A Potential Partnership
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The Wall Street Journal is reporting that Yahoo! (Nasdaq: YHOO) and Microsoft Corp. (Nasdaq: MSFT) have once again resumed talks about search and advertising partnerships. Yahoo and Microsoft have been the subjects of merger rumors for several months and it sounds like the talks are beginning again.
Yahoo CEO Carol Bartz and Microsoft CEO Steve Ballmer met last week as part of the discussions, the WSJ reported. They said it remains unclear whether the companies will reach a deal.
Microsoft and Yahoo also are each discussing content-sharing agreements with Demand Media, which operates niche Web sites and publishes and syndicates articles and videos, according to one person familiar with the situation. Yahoo sells display advertising for Demand Media and has had discussions about a deeper partnership. Talks between Demand and Microsoft have increased recently as well. Yahoo and Microsoft declined to comment.
Microsoft tried to buy Yahoo in early 2008, but its unsolicited $44.6 billion offer was denied by its ex-CEO, Jerry Yang.
In recent weeks, the WSJ said Yahoo and Microsoft were still discussing a deal in which Yahoo would outsource its entire search engine to Microsoft to cut costs.. But the talks also have included more limited scenarios, such as agreements in which Yahoo would sell some premium display advertising on Microsoft's Web sites while Microsoft would sell ads next to Yahoo search results.
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