Microsoft and Yahoo Reportedly Talking Ad Deal
Microsoft and Yahoo are reportedly discussing a possible advertising agreement. The potential ad alliance would allow Microsoft to sell search ads on Yahoo, and in turn, Yahoo, would display ads on Microsoft properties a person familiar with the situation disclosed.
Yahoo!’s new CEO, Carol Bartz, and Microsoft CEO, Steve Ballmer, apparently met face-to-face to discuss search and advertising partnerships. A number of different sources revealed that the talks centered on what type of commercial relationship Microsoft and Yahoo! could have in the future.
Sources for Yahoo made it clear that the talks were not about a renewed acquisition attempt by Microsoft and that the meeting may not might bring about any type of alliance. Microsoft and Yahoo have chosen not to comment on the talks at this time.
“It’s long past time,” said one outsider who had been told of the discussions as reported by D: All Things Digital. “With Google’s huge market share, these two need to work together and the problems they had should be put in the past.”
Microsoft had offered $4.6 billion or $33 per share to purchase Yahoo on January 31, 2008. Yahoo! had held out for $37 per share and the Microsoft – Yahoo negotiations fell apart last May when Microsoft CEO, Steve Ballmer, walked away.
The new advertising alliance would provide the number two search engine, Yahoo, and the number three, Microsoft, with a comprehensive competitive marketing strategy to contend with the number one U.S. search engine, Google. According to comScore, the top five U.S. search engines for February 2009 included Google with a search share of 63.3%, Yahoo with a share of 20.6% and Microsoft sites coming in at 8.2%.
The breaking news was first disclosed by Kara Swisher on the D: All Things Digital blog on April 10 in the article entitled, Exclusive: Yahoo’s Bartz and Microsoft’s Ballmer Finally Talking About Search and Advertising Partnership.