There is absolutely no doubt that Microsoft and Yahoo are in the final stages of some sort of search/search marketing deal. And lots of Yahoo’ers are buzzing that the big announcement is today along with Yahoo’s quarterly earnings report after the markets close. But our sources are saying that while the deal is imminent, it won’t be announced today.
But Yahoo sure is being secretive about what they are announcing today. Some people who usually have access to the earnings call script are out of the loop, our sources say. Yahoo has been one of the leakiest companies in the last couple of years (remember this?), and CEO Carol Bartz may finally be trying to put the hammer down on some employees suspected of facilitating those leaks. Is something unusual being announced today? Perhaps, say our sources inside Yahoo. But they can’t say what it is besides speculation about a Microsoft deal.
But back to those Yahoo/Microsoft negotiations – sources say that a search deal is imminent. But they are also saying that Yahoo continues to push for an outright acquisition. Microsoft, after pulling their acquisition offer last May, never again expressed any real interest in buying the company. The search deal is the next best thing, and Yahoo has to take it. With Google unable to partner with Yahoo over search, there’s no one else ready to step in.
The Microsoft/Yahoo search deal would apparently put Microsoft’s new favorite child, Bing, behind Yahoo’s search product, which has a much higher market share than Microsoft’s. The deal would supposedly see Yahoo get paid $3 billion upfront, as well as pretty much all of the revenues (after traffic acquisition costs) that its searches provide over the first few years of the deal, 24/7 Wall Street reported the other day. There is also talk that Yahoo’s relatively strong display advertising business would be put in place for both companies.
We’ve previously written about what a deal like this could mean for both companies, but things have changed a bit since Microsoft completely revamped its search product. It’s still too early to tell if Bing will make any meaningful inroads against market leader Google. (And in fact, it looks like Bing may be stealing share from Yahoo, rather than Google.)
But the general consensus among users seems that they at least like Bing — something which cannot often be said about consumer-facing Microsoft products. And that has to be seen as good news if Microsoft can combine its search product with Yahoo, giving it nearly a 30% market share.
There are no shortage of rumors flying around today given Yahoo’s earnings, but remember that Microsoft also announces its earning on Thursday after the market closes. Yahoo’s stock fell 1.5% during regular trading today, but has already fallen another 2% in after-hours trading leading up to earnings. Their call is set for 2PM PT, we’ll be listening in.
Microsoft has hit bulls eye with Bing. The launch has upped the brand a bit more also. Off course Yahoo also sees this. I think its cool again to be part of MS club.
But I also say why buy Yahoo now (MS is already eating at Yahoo share with Bing) , wait a bit more and let it come crawling to you.
Right, Bing has started with a bang for sure.. much above any ones expectations… And Bing is a bigger threat to Y! than Google.
The sooner they aquire Yahoo market share the better.
They want to educate people about bing fast and turn it into more profitable product. That way they can push on google more without eating the company profit.
I’m not sure if MS has hit the bullseye with Bing, but it’s certainly a lot better than Live.
I keep my fingers crossed; so do rest of us… he he.. Let’s see what’s next
Hmmm lets see
MG, maybe something is going on after all, considering Yahoo! is down right now!
heh. let the conspiracy theories begin. maybe they’re just slowly rolling out the new homepage?
Damn! its back up! with a link to go the new homepage
If there is a deal; Microsoft should give Yahoo some Cash + MSN, Live Messenger, Hotmail those would be better off with Yahoo as Microsoft has never done good with MSN and Live and in return Microsoft could get Yahoo Search.
Yahoo could also become the web division of Microsoft or 3rd party developer and take over all Microsoft Online properties.
I could see it already.
Yabing! Or maybe even… Binghoo!
I personally am rooting for Yabinoo!
I think it would most likely be… MicroWho
Microhoo!
Guess YaHoO! can forget that Microsoft partnership then
This could definitely get interesting. Thanks for sharing.
Posted on Big Freakin News.
MG,
Although you have the Apple Fanboy beat for TC, you could be a little more fair to Microsoft.
“But the general consensus among users seems that they at least like Bing — something which cannot often be said about consumer-facing Microsoft products.”
Perhaps you should have said “something which cannot often be said about consumer-facing Internet products from Microsoft”
Microsoft’s internet businesses have generally been big busts, but many of its consumer-facing products have been well-received by many .
Successes: Future, Present, Past
Future
Windows 7 seems like it will be a hit. If you can get Mossberg to say this about a Beta version of a Microsoft product, you probably are doing something rights:
“In general, I have found Windows 7 a pleasure to use. There are a few drawbacks, but my preliminary verdict on Windows 7 is positive.”
Present
Xbox seems to me to have been a consumer-success not doing too poorly nor is Xbox Live.
Past
Last I checked, Office, which is just as much a consumer product as well as business product, is still dominant despite free products like open office being available for years.
Back in the game, here comes another MS & Yahoo story. just changing the outlook of the search engine, i am not so sure what can be achived. And acquisition of yahoo is not the best option. If it were, yahoo would have a higher market share than google. It will only make MS second largest search engine…