Microsoft and Yahoo! sitting in a tree... plotting their way to world domination.
According to a report on CNN Money
, Microsoft has been in discussions with Yahoo! about possibly acquiring a large portion of the internet search giant.
Yahoo!'s top brass are reported to be considering the deal, despite Redmond's history of winning over major technology markets on its own.
The move comes as a bit of a surprise, but it is understandable with increasing pressure coming from Google, the software giant's major competition in the internet search and advertising industry.
Yahoo! is worth around US$45 billion based on the company's stock price. In order to acquire the search giant, Microsoft would have to spend more than that for an acquisition to be approved by the board.
So far, Microsoft has invested millions of dollars into search engine technology and online advertising systems, but the software giant is yet to make an impact on Google's dominance in these areas. According to the report
, Microsoft executives hope that Yahoo!'s strengths in search and online advertising systems will give the software giant a chance to dent Google's success.
In related news, Google is believed
to be preparing an online text editor that will only intensify the battle between Microsoft and Google. It looks like Google is attempting to target Redmond's core application suites, including Office.
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