Whispers Abound About New Yahoo-Microsoft Deal

20 November 2008

SUNNYVALE, California: "Learn from yesterday, live for today, hope for tomorrow," Albert Einstein once opined. These words currently seem apposite for Yahoo, as rumours grow about the possibility of reigniting its proposed search tie-up with Microsoft.

As reported earlier this week, Jerry Yang, a co-founder of Yahoo, will step down as chief executive as soon as a replacement is found, returning to his former role of "Chief Yahoo", which does not carry any executive responsibilities.

Yang has previously encouraged a renewed bid from Microsoft following the collapse of talks between the two companies earlier this year, and his departure is seen by observers as an opportunity to breathe life back into the deal.

Says Ryan Jacob, chief investment officer of the Jacob Internet Fund, which holds a stake in Yahoo: "There's no question Microsoft's interested, and there's no doubt a new chief executive would take a fresh look at this."

It is thought any new agreement would probably take the form of an online search alliance rather than a full takeover by Microsoft.

Data sourced from Financial Times; additional content by WARC staff