MS quashes Yahoo! acquisition rumours

Written by Tim Smalley

May 24, 2007 | 11:14

Tags: #acquisition #advertising #conference #internet #rumours

Companies: #google #microsoft #yahoo

In an interesting move, Microsoft’s chief advertising strategist, Yusuf Mehdi, has said that that the software giant has no intention of buying web portal Yahoo! Inc.

During Goldman Sachs’s annual Internet conference, Mehdi said that “Yahoo has a great business. Kudos to them, but we’re bigger globally.”

Microsoft’s incredible shun is sure to end the speculation surrounding potential deals between the two companies, but that could mean Google will continue to dominate all things online.

Mehdi said that Microsoft has all of the major pieces to become a bigger player in online advertising, but the question is whether it has enough to stop Google’s domination?

Many believe that even a Microsoft/Yahoo! collective wouldn’t be enough to stop Google, so we’re not sure how all of these pieces are going to come together to make Microsoft a more dominant force in online advertising.

Do you think this the right move for Microsoft, or should the two companies worked out a deal? Let us know in the forums.
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