Yahoosoft? Microhoo? MicroYahoo!? YahooMicro?

I try to stay away from writing on the “hot” topic of the day as it generally is getting pummeled by every other blogger and feels a little like regurgitating news. Which I guess is kind of what it is. In any case, I’m going to comment on today’s hot topic.

The New York Post is reporting that there are renewed talks between software giant Microsoft (disclaimer: I’m a shareholder) and perennial second place search engine Yahoo! in regards to a merger/purchase or some sort of more in depth cooperation.

Stung by the loss of Internet advertising firm DoubleClick to Google last month, Microsoft has intensified its pursuit of a deal with Yahoo!, asking the company to re-enter formal negotiations, The Post has learned.

Very interesting. If it were just some first time around talk, I’d dismiss it as rumors and go about my merry way. In fact, I probably wouldn’t even mention it here. But, it’s not the first time this has surfaced. And because of that, it just might be for real. It may not happen, but I’m not doubting that the talks are taking place.

So, what happens if the two join forces as one company? Search giant Google still holds the market share. Advertising giant Google still holds the market share. Oh, and your Microsoft finds a way to integrate flickr into the kernel of Windows Vista 2009. 😉 Ok, I might have made that one up, but the first two are true.

What Microsoft would gain is a range of companies that have much more insight into the web 2.0 phenomenon than any of the MS products/divisions. They gain, flickr, and a number of other purported web 2.0 leaders. And the combined forces might just be enough to make a run at Google and maybe even unseat them in advertising. Not search, but advertising.

What do you foresee as the effect of a MS/Yahoo! merger? I’m especially curious to hear what TDavid has to say on this btw.

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About Shane Ede

Shane Ede is an IT guy by day and a Entrepreneurial Blogger by night. You can follow him here on Thatedeguy or over on Twitter and Google+.