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Yahoo & Microsoft Talking Again: Reports

According to comScore, Google controls 63.3% of the search market now to Microsoft's 8.2% and Yahoo's 20.6%

Quoting unnamed sources the Dow Jones All Things Digital blog reported Friday that Yahoo and Microsoft have started sounding each other out again about a search and ad partnership and said Microsoft's CEO Steve Ballmer and Yahoo's new CEO Carol Bartz met the week before last.

The Wall Street Journal chimed in with the same tune Saturday.

The talks, at various levels, were described as "preliminary."

It's not about acquisition and no commercial arrangement may come of it.


Microsoft has hired a number of folks out of Yahoo including its current online leader Qi Lu and is working on a search redesign code named Kumo.

One scenario puts Microsoft in charge of search ads while Yahoo takes over all display and premium advertising. Google, however, is pushing into display ads while, like Microsoft, eyeing Twitter.

According to comScore, Google controls 63.3% of the search market now to Microsoft's 8.2% and Yahoo's 20.6%.

Yahoo closed Monday up 7% to $14.42. Microsoft closed down eight cents to $19.59.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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