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Steve Ballmer Visits Silicon Valley, Yahoo Search Deal Rumors Buzz
by Michael Arrington on May 5, 2009

It started early Monday morning with Yahoo’ers chattering that the long awaited Microsoft search deal, first floated in the middle of last year when an outright merger was abandoned, may be near. Something internal at Yahoo set these guys off, and non C level executives got wind of it. The buzz started, with one call I received saying a deal was closing now. As in ASAP.

Much of this may have to do with the fact that Microsoft CEO Steve Ballmer is in Silicon Valley, and has been at least since the weekend. He’s speaking at an event Wednesday night, which explains the trip. But instead of just jetting in and out, he’s come days early. Why? Who knows, but that’s plenty of information to start the rumor mill going.

Our direct sources are telling us that discussions are progressing, as they have been for some time, but that major deal terms still need to be worked out. One source said not to expect a deal in the next few weeks.

Ever since Google was forced to bail on their own Yahoo search deal, some sort of alliance with Microsoft was inevitable. Well, inevitable just as soon as Yahoo got their CEO situation under control.

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  • hmm… i m just wondering what will the internet game be if this deal is thru. Goolge Vs MS head on?? will b intresting to watch..

    • google will win anyway. microhoo already failed to compete google.

      • It has to be some reversible deal, coz yhoo feels very much insecure of future. Maybe search.yahoo.com ip should point to MS servers? And search results still having yahoo logo/design, so that when deal is reversed yahoo can continue from square 1.

      • dude…totally agree…

        Yahoo is good the way it is….no one wants to see Yahoo rewritten in ASP or powered by IIS…that will be awful to watch.

        As for Google, it is and still will be the pioneer in search engine.

        http://www.livbit.com

  • oh microhoo, i am getting a lil tired of the whole microsoft – yahoo buzz. so c’mon steve b., just buy these guys and we all can move on …

  • don’t think that wat MJ

    yahoo and microsoft are big deals each one alone,
    merging together will make them much more strong that they could event compete google

  • Steve and Carol would deliver one hell of a keynote together. Steve running around screaming “developers, developers, developers” while Carol drop kicks a few lucky audience members.

  • A combined Microsoft and Yahoo search deal is really all about advertising….but even the two combined will not bring them even close to the current Google numbers.

  • Ballmer is a weak CEO. This is the sign that Microsoft is going down. They can’t develop a search engine on its own and had to bailout and buy another company’s search engine.

    I hope Bill Gates takes over Microsoft again and show Ballmer how to develop and conduct business.

  • “Something internal at Yahoo set these guys off, and non C level executives got wind of it. The buzz started, with one call I received saying a deal was closing now. As in ASAP.”

    You do realize that you’re publishing illegal in-company information for a public company here? As in: non-SEC compliant?

    Anyone?

  • Well, he was in Egypt a week ago, does that means than MSFT is going to Acquire Egypt :D

  • Anyone else see the likeness to Montgomery Burns? Maybe that’s a little hard on Steve but it’s still pretty funny.

  • I can’t believe the deal is back up again.

    I’ve been pretty negative on yahoo. I wonder if this will revive the stock.
    http://www.trad...spx?symbol=yhoo

    Microsoft has been negative too lately. Especially with today’s layoff rumors
    http://www.trad...spx?symbol=msft

    But then again, even Google is a bearish position
    http://www.trad...spx?symbol=goog

    Maybe I”m just always a bear

  • What a joke. Ballmer is a typical bean counter just like his dad who worked at Ford his entire life.

    They guy has no taste whatsoever and no vision. He needs to embrace the cloud. Every company hates managing Exchange servers. He should be building data centers to host Exchange and Great Plains. Take a clue from Salesforce.com Steve. This Yahoo thing cracks me up. They have had zero success with online properties. Hotmail was once a leader and is now a joke. Slate? I can’t even remember what the MSFT search engine is/was called.

  • I think that this will be a great merger. I believe that even if they do merge, that Wolfram Alpha is the next search giant. sorry goog and msft.

    • Any reason besides hype to believe that Wolfram’s product will do ANYTHING to put a dent in Google and MS’s business?

      Have you even seen the product?

  • It doesn’t matter what Microsoft does… after Vista how can anyone have confidence in them… I look at Steve and I see a glorified used car salesman who pawns junk…

  • Here is what I don’t understand – If Microsoft is REALLY committed to a better search experience for their customers why dont they use the Yahoo BOSS api?

    It’s that simple, really…

    • Because, of course, otherwise there’s no way anyone can have a better search experience.

      Many of these complaints against Microsoft’s search applications are unfounded.

      I have still yet to find a better image and video search than Live Image Search and Live Video Search.

      I’ve said it before, and I’ll say it again… Quality of a product isn’t the main problem in today’s market. It’s about the reputation of the brand behind the product. Like Gebadia proves my point by saying, “After Vista how can anyone have confidence in them”…

      The minute anyone mentions Microsoft, a crowd of cult brand fans announce its bad reputation.

      I’ll even go as far to say that if from this point in time, Microsoft makes only good products, cult branders will still roll their eyes and consider them crap as soon as the word Microsoft is mentioned.

      • could not agree more, most of those who dislike Microsoft never even tried the product they complain about.

        very simple example people with iPhones they got so excited about Copy and Paste in Version 3, wow what an amazing achievement. my phone in 2004 had more functionality than the current Iphone,

        Google search is still ahead and rightly so, they offer the best search so far, but having MS and Yahoo and other competitors is a great thing, even though lately it became more obvious that searching for news should not be done on any of those engines as much as it should be done on live blogging websites like twitter and alike. because those are the real time story tellers. which mean there is always a change and the winner will be the one who make the right choices for tomorrow

  • He’ll be speaking at Stanford on Wednesday.
    See: http://etl.stanford.edu/ for more info.

    • yeah … you should check it out — I think there are tickets but there will probably be extra seats.
      Its at Memorial Auditorium at Stanford.

  • Sorry Yahoo… Loved you but you failed when you tried to become a media company and lost focus… While I am a Google Fanboy we need some good competition to keep innovation flowing. Microsoft has the cash to make it happen…

  • Once again in this current market it would be silly to acquire Yahoo. There are more people and institutions wanting to dump both Microsoft and Yahoo shares into the open market. Many people just want to break even. To many hands in the cookie jar. When economy improves then maybe.

  • Steve Ballmer: Yeah I was in the neighborhood and thought by myself hmm yahoo I remember a deal went wrong lets try it out again by saying “hi guys whtSUP” by the way u been working out haha.
    But hea? remember a few months ago we had a deal going but you know me
    Responsibility responsibility I had a new fishing rod it was fishing season what a guy to do.

    Yahoo : Ooooh that kind of thing don’t worry its all good we all went fishing we did not had the guts to say it but you said it responsibility’s

    Steve Ballmer : Let me suck up a little you guy’s have a great going here healthy competition.
    bla bla bla bla bla

    And so my friends who knows what happens next.

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