Microsoft Again Pursuing Talks to Acquire Yahoo, Finish off Google

Kachina Shaw

The New York Post is reporting this morning that Microsoft has renewed its request for formal discussions with Yahoo management of a possible acquisition.

 

Analysts say the deal would likely be worth some $50 billion. The Post positions the move as an urgent response to Google's acquisition of DoubleClick, which Microsoft had been considering purchasing -- just the most recent battle in Redmond's unofficial war with Google for online search and ad market share.

 

A Yahoo/Microsoft marriage would create a 27 percent online search advertising market share, against Google's 65 percent share. Yahoo also made news this week with its $680 million purchase of the rest of ad exchange firm Right Media.

 

The news of the talks between the two online giants is dominating the Web today, but doesn't come as much of a surprise. Yahoo's Panama online ad platform, its content, and its younger demographic, added to Microsoft MSN's older demographic and multiple placement opportunities for all that content, create a better-balanced Google competitor, if skillfully managed. And assuming Yahoo goes along with an acquisition plan and anti-trust investigations don't get in the way.

 

Yahoo shares shot up 18 percent in early trading.



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