Guess Who's Back, Back Again... Redmond's Back. Tell Icahn

Rich Tehrani : Communications and Technology Blog -
Rich Tehrani
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Guess Who's Back, Back Again... Redmond's Back. Tell Icahn

Carl Icahn is pushing hard to get a Microsoft Yahoo deal done as he picks up more Yahoo shares and waits for something to happen between the two companies. The latest? Microsoft will potentially pick up the search business for $20 billion. Ballmer has said repeatedly that this is the only part of the company he is interested in.

This leaves Yahoo with only a portal and to be honest, Yahoo may be better off doing this deal so it can focus more on an area where it has a huge advantage. In addition, one wonders if it isn't more lucrative to let someone else worry about the search technology while you make money by showing the ads on your hundreds of millions of page views.

For Microsoft, it gets yet another search engine people don't really like using. It is unclear to me how Redmond can tie these disparate search technologies and companies together to make 1+1=3.

The one obvious synergy is the immediate jump in ad network size. The sheer number of advertisers will grow as a result of a Microsoft/Yahoo search deal and at least in this respect, a combined company will be a bigger threat to Google.

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