November 23, 2008 by Matt Thomas
Microsoft and Yahoo seem finally ready to link up and make a concerted effort to fight the dominance of market leader, Google. The resignation of Jerry Yang, Yahoo’s beleaguered CEO is thought to have been the catalyst for renewed interest from the software company.
The timing of this move will come as a surprise to some after Steve Ballmer, Microsoft CEO, denied that Microsoft were interested in buying the company outright after famously having a $4.75 billion dollar bid rejected out of hand by Yang earlier in the year.
Indeed, the deal is unlikely to be anything as simple as a buyout. After new rounds of talks between the companies, analysts predict that the deal will most likely involve a sale and leaseback structure, where Yahoo would sell its technology patents and online traffic to Microsoft, though this is only educated guesswork.
The deal would provide a measure of security for Yahoo, who are currently staring full collapse in the face. It would also shore up Microsoft’s position as they come under increased pressure from Google and particularly their Chrome browser which looks set to challenge Microsoft’s Internet Explorer hard for their position as browser of choice for the casual computer user.
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