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Tuesday, May 20, 2008

Online marketing: Microsoft-Yahoo Talk for Fresh Deal

It is true that Microsoft-yahoo partnership would bring significant changes in the online marketing world. But the deal is becoming speculative day by day. Recently, news was that Microsoft has officially withdrawn its bid for Yahoo. It withdrew its 33 USD-a-share buyout bid on May 3, after the two sides failed to agree on a price.

Now latest buzz is that Microsoft Corp. has announced that it had consulted Yahoo Inc. with a possibility of a fresh deal that does not involve an acquisition of the Internet company.

Microsoft would do it to improve its online marketing business. The alternative deal would involve a transaction with Yahoo but not an acquisition of all of Yahoo.

Microsoft not at all want to acquire all of Yahoo at this time, but the transaction would improve and expand its online marketing services and advertising businesses.

Also, Microsoft reserves the right to reconsider this alternative depending on future developments and discussions with Yahoo or with shareholders of Yahoo or with other third parties. Speculations are that Microsoft has in mind a partnership or joint venture for search-related advertising, which is very profitable among various online marketing ventures.

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