Microsoft has announced its intention to re-open talks for a takeover of Yahoo!, according to the FT But only if the existing board is shifted first. This is likely to have profound implications for the future of Yahoo! if the deal were to finally take place.
Other questions arise over Yahoo!’s recent deal with Google ads if it is finally acquired by the computing giant:
· Is it in Microsoft’s interest to purchase the main viable contender to Google now that the Yahoo! is effectively in bed with the company?
· What would be the future of the Yahoo!/Google deal were an acquisition to go through?
· What would the future of the search marketplace look like if things go ahead?
Of course a healthy search industry demands more than one key player and Microsoft’s purchase of Yahoo! could undoubtedly mount a strong challenge to the incumbent. It is certain that a new Microsoft-apointed board would have their sights on growth and put their all into such a challenge. But would they have the new media nous to do what existing Yahoo! execs have failed at?
What’s clear is that shaking out the deal and mounting the challenge in this increasingly incestuous market is going to be increasingly difficult.
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