The dominance of Google on the web is really getting to Microsoft!
The NY Post has this exclusive story today: “Microsoft has intensified its pursuit of a deal with Yahoo!, asking the company to re-enter formal negotiations”
Yahoo is valued at $50 billion according to the same report and if this deal was to take place, it would undoubtedly be the largest in the tech sector.
But why does Microsoft want Yahoo?
Microsoft trails both Yahoo and Google in the highly lucrative Web Search business. They are feeling the pressure, especially with Google recently adding DoubleClick to its portfolio and Yahoo announcing they would buying a huge stake in Right Media.
But would we see an integration of other features? Especially Email services and respective communities like Live Spaces and Flickr etc?
Currently they do share a symbiotic relationship of sorts when it comes to the Instant Messaging sector.
Yahoo! stock has seen a tremendous amount of activity today. They are currently up 10% for the day and you can follow it here.
In other Yahoo! related news today: Yahoo! would be shutting down Yahoo! Photos in favour of Flickr. Flickr is soon looking to be a video hub too. Flickr won 5 awards in the recent Webby Awards which included the award for the Best Community.
Latest Update is that: Yahoo is not interested. WSJ has the latest...
They also have a nice comparison of the three companies:
The internet space does have some monopolies and msn, yahoo and google are the 3 big players. I think further consolidation will not be very useful and hence Yahoo! feels it deserves a lot more then $50b.