Monday, May 19, 2008

Rumor: Microsoft Purchasing Yahoo Search to Combine With Facebook

As Microsoft toys with Yahoo over the possibility of a resumed deal to buy only its search business, is it also thinking of throwing Facebook into the mix? That’s the latest rumor making the rounds. Asked about it in Japan, Facebook CEO Mark Zuckerberg danced around the question by stressing his desire for Facebook to remain independent, but declined to comment specifically on whether a sale to Microsoft was in the works. Presumably, though, he wouldn’t be in Japan if any deal was imminent. The only thing that is safe to assume right now is that Microsoft’s corp. dev. guys are talking to everybody else’s corp. dev. guys about any number of combinations or partnerships. This is not the first time a rumor has surfaced that Microsoft wants to buy Facebook. After Microsoft walked away from Yahoo the first time, there was chatter that Facebook might be an alternative. What is different about this rumor is that it contemplates a combination of Yahoo’s search business with Facebook. Facebook is not very searchable, but if Microsoft owned both Yahoo’s search engine and Facebook, it could expose all of that social data to Yahoo’s search engine (while keeping it hidden from Google’s). That would give Yahoo’s search engine a leg up on social relevancy and people search, and thus give it a competitive advantage over Google in that area.
http://www.techcrunch.com/2008/05/19/microsoft-needs-to-do-something-but-combining-facebook-with-yahoo-search-aint-it/

No comments: