Microsoft, Yahoo Ponder a Display-Advertising Deal

April 15th, 2009

In the deal that refuses to die, Microsoft and Yahoo are reportedly in talks once again about joining forces in search advertising.This time, it’s not a merger or a Microsoft acquisition of Yahoo’s search assets. Rather, Yahoo might take over Microsoft’s display-advertising business, according to a report in The Wall Street Journal. Yahoo’s stock rose 6.5 percent in early trading on the news.

According to the Journal, Microsoft CEO Steve Ballmer and Yahoo CEO Carol Bartz have discussed what a potential partnership might look like. A variety of ideas are being explored, but a full acquisition of Yahoo is reportedly not on the table.

“We have to take all these rumors with a grain of salt. We’ve heard all of this before. What’s different this time is the personnel change at the top of Yahoo. That makes it possible for the two companies to talk and consider how they might work together in a less emotional way,” said Greg Sterling, principal analyst at Sterling Market Intelligence. “In a way, it would be irresponsible for Carol Bartz not to have a conversation with Microsoft.”

Click here to read the rest of my story on NewsFactor.

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