Rumor: Yahoo Search Deal With Microsoft “Down to the Short Strokes”

Posted 07/19/2009 at 10:58am | by Justin Kerr

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Rumors that Microsoft and Yahoo were back at the negotiation table have been floating around since April, but nobody held out much hope that a deal would ever be reached. After enduring nearly a year of roller coaster negotiations, even we started to lose interest in the back and forth chest thumping between the two tech giants.

When the acquisition deal fell through last November Microsoft stockholders let out a collective sigh of relief, while Yahoo shareholders watched their fortunes fade rather quickly. Now that the reality of the situation has finally sunk in, it would seem even Carl Icahn is eager to make a deal with Microsoft. This time however, only the search engine is on the table. "I've been a strong advocate of getting a search deal done with Microsoft," Icahn, who owns about 5 percent of Yahoo and sits on its board, told Reuters in a phone interview Friday. "It would enhance value if a deal got done, because of the synergies involved."

The deal is said to be “Down to the short Strokes” and According to a separate posting made by All Things Digital, several key Microsoft online executives are in Silicon Valley attempting to iron out the details. Microsoft is likely hoping the deal will allow them to tap into Yahoo’s lucrative search advertising network, but with all the recent success Bing has enjoyed recently, do you think they would phase out Yahoo search as a brand?  

Let us know what you think.