According to a CNBC correspondent with a source close to Microsoft negotiations, there is no revival of Microsoft-Yahoo! talks. Apparently nothing has changed since yesterday and there is no possibility of a complete acquisition of Yahoo!
A purchase of Yahoo!'s search business is much more likely if you ask me. It's the one business that Microsoft really needs, and is the one that perhaps Yahoo! should concede. Of course, Yahoo! is #2 in search, but they're also #1 in display advertising and a close #2 in overall web traffic. Display advertising is a much better market for Yahoo!'s web traffic. Shopping out search to Microsoft would be a good idea given Microsoft's willingness to pay top dollar for it.
Tuesday, June 24, 2008
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