Tuesday, July 21, 2009

When will Yahoo and Microsoft do something?

I just don't know how much longer Yahoo can hold out on forming a strategic partnership with Microsoft. I'm sure the recent release of Bing has Microsoft chomping at the bit to serve search results to Yahoo's audience.

I couldn't help but notice the favorable review Carol Bartz gave to Bing on today's Yahoo Q2 earnings call. It sounded pretty scripted and my gut tells me this deal is close.

Rumor has it Yahoo still wants to sell the farm but Microsoft is not interested. Given the current state of the economy I think that's likely true but I think both companies understand they need each other to take on Google long-term.

I predict we will see a formal search partnership between Yahoo and Microsoft on the search front within the next 90 days and I think these companies eventually come together down the road once the broader economy sorts itself out.

We'll see.

On a side note, our team is looking closely at Bing's API and we may also be adding it as a search alternative on Startlike. The reviews continue to be favorable and I've also found it to be a solid product.

1 comment:

  1. Ha! Beat you to blogging by about 45 minutes. Victory is sweet.

    Totally agree on an imminent deal between Microsoft and Yahoo!, although I don't know that it'll be as big as "selling the farm". I'd predict an advertising deal, maybe some merging, but if Microsoft wanted to buy Yahoo! they would have done it before they spent all that money promoting Bing. We'll see.

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