Microsoft Close to Taking Over Yahoo’s Search Advertising

July 17, 2009

(ChattahBox)—According to All Things Digital, Microsoft and Yahoo are poised to reach a deal, where Microsoft would purchase Yahoo’s search advertising business. The alliance between the two companies would provide greater competition to Google’s dominance and allow Microsoft to benefit from the lucrative search engine ads.

The deal is said to involve a hefty payment of several billion dollars to Yahoo for its search advertising enterprise, with Yahoo to receive additional payments from advertising revenue.

Business analysts believe the joint venture between the two companies could save money, while presenting a greater threat to Google as a united front.

The question is whether Microsoft has systems in place to effectively migrate to become competitive in the search engine advertising business.

Last year, Microsoft offered to buy Yahoo for $44.6 billion in cash and shares. The deal was spurned and resulted in a major shakeup of Yahoo, with Carol Bartz taking over the reigns as CEO from Yahoo co-founder Jerry Yang.

The two companies may announce their deal next week, but company spokespersons had no comment on the impending venture at this time.



One Response to “Microsoft Close to Taking Over Yahoo’s Search Advertising”

  1. Bedrijvengids on July 19th, 2009 12:49 am

    With all the recnt reports out there that people trust TV ads more than online, I’d think people would start understanding how these media could be most effectively used together – broadcast to generate Awareness and Interest, online to stimulate Desire and Action. Integrated is the most efficient approach.

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