The Wall Street Journal is now reporting that talks between Microsoft Corporation and Yahoo Incorporated, regarding a merger or some sort of deal to fight Google in the online advertising market, are over. People familiar with the situation supposedly believe that although a merger is no longer going to happen, other forms of cooperation are still possible. A year ago, the two companies explored the idea of combining to form a greater competitor to Google, though those talks led nowhere. For now, Yahoo doesn"t appear interested in a major deal with Microsoft, say people familiar with the situation.
ComputerWorld, on the other hand, is reporting that analysts are not surprised about the supposed merger or deal and are actually questioning not if, but when it will happen. These particular market analysts believe that Microsoft and Yahoo must do something quickly to fight off the evil Google. They see more advantages than disadvantages of a tie-up between Microsoft and Yahoo but are also quick to point out that a deal between the two companies could pose some huge challenges. It would simply be a headache to integrate the workforces and technologies of two giant companies.
Since Microsoft and Yahoo spokesmen are declining to comment, the fact of the matter is that this is still being labelled as one big rumour. Is a merger in order, is a deal necessary or should the two companies continue to be fierce rivals?