Microsoft & Yahoo deal?

Steve Ballmer, Chief Executive of Microsoft, has rejected claims of a fresh bid to take over Internet site Yahoo! The search engine giant have recently experienced a slump in shares and seen their market value plummet , Microsoft’s bid to take them over in early 2008 seemed to come at just the right time but Yahoo! surprisingly rejected this offer.

Speculation was once again rife this week with yet more claims that a US Technology Company were trying to reignite Microsoft’s takeover bid with a new make-up.Reports have subsequently dismissed these claims, insisting that Microsoft have no such intentions.

Speaking to Fox Business Network Ballmer explained that: “You certainly shouldn’t think that we’ll go back after Yahoo! We may try to do other kinds of partnerships with them, but acquisition is a thing of the past” bringing fresh speculation that the Chief executive is still keen to work in some form with Yahoo! Microsoft have since, proposed to Yahoo a search deal that would mean Microsoft having control of its search engine and search ad business in return for an upfront payment and a cut of any future ad revenues. Bullmer believes the best time for the companies to unite will be during their management transitional stages.

Ballmer speaking to the Financial Times still believes in the quality of Microsoft’s initial offer but is undoubtedly aware of the promise of the subsequent proposed deal “We had a deal on the table that they didn’t choose to take, but I still think that makes sense. For us, the value to the customer, the value to the advertiser, all gets created around the search partnership”.

4Ps marketing will continue to monitor the situation as any merger will impact on our SEM strategies.

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