Rumor: Is Microsoft Taking Another Look At Yahoo?

Posted 09/18/2011 at 11:43am | by Justin Kerr

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Unnamed sources from Business Insider are determined to keep the Microsoft / Yahoo merger rumors alive, and according to contacts close to Microsoft’s MSN portal, consolidation is “definitely” in the air once again. When it comes to broad reaching content farms, MSN, Yahoo, and AOL pretty much have the market locked up at this point, and Yahoo’s recent troubles have almost certainly made them a more tempting target.

According to SAI’s source who asked to remain anonymous because “getting fired sucks”, "Yahoo is a lot more interesting” than AOL. The recent and very public ousting of CEO Carol Bartz was an embarrassing move by the company’s board, and shareholders that have seen their investments squandered over the past several years are no doubt jonesing for anything that would convince them there is light at the end of the tunnel.

As for Microsoft, winning the battle for people’s homepages might not sound like a big deal for most enthusiasts, but believe it or not it could make a huge different in the war on search. "It's not every day that you watch both of your competitors blow themselves up. It's like watching a train wreck."

"The portal space is challenged. Facebook is just absorbing more and more minutes – usage. That's having an effect on portals. The time shifting toward mobile is another factor weighing on portals. The problems AOL and Yahoo have are exacerbated by management."