Microsoft and Yahoo! resume talks.

Microsoft Resumes Talks with Yahoo

With the battle between Microsoft and Yahoo continuing, many people are wondering exactly how this will pan out. This is after Microsoft returned interest to Yahoo after pretending to tender an offer and walked away. And if Microsoft gets its way, they will claim almost complete acquisition of Yahoo, the second largest internet search company in the world.

Microsoft initially backed out after Yahoo CEO Jerry Yang was not sold on the $47.5 million offer. Consequently, shares in the company dropped by 15%. If a partial deal is brokered, Yahoo may still have some control over the company. However, Yahoo’s priority is to make sure that they choose the option that best benefits its shareholders. Everyone knows the deal will happen; it is just a matter of when. Both Microsoft and Yahoo need this deal if they are to compete against the likes of Google. But the longer they take to make their decision, the longer Google will benefit.

So what does Google have to say about all this? Google bosses, including CEO Eric Schmidt and Google co-founders Larry Page and Sergey Brin, have told journalists that they have only recently heard about Microsoft’s latest move and needed time to consider their reaction. They also insisted that they have no reason to worry about Google’s dominant standing in search advertising. ‘Google is doing very well in what is a very small part of a very large industry’, said Mr. Schmidt. Sergey Brin stated that the reason Google is in such a strong position is because it delivered a better product and does not resort to ‘strong-arm’ tactics like other firms.

Recently, Yahoo and actually joined forces with Google on a pilot of its rival’s search advertising technology and are said to be working very well together. And when asked whether Google will consider hiring Jerry Yang should he lose his job, they said they would be excited with the prospect, but were doubtful whether it could actually happen.�

The two Google founders also insisted that it is social networks, not search engines that were a main concern with regards to privacy. ‘Social networking is a big problem’, said Page, and further explains that when is came to search data, ‘there has been very little evidence of damage’.

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