Well… this could happen. It might happen. It hasn’t happened yet. But, What if it does happen? It is being reported that big daddy MSN is in talks with the Stanford owners who created the first great search company on the web. No, not Excite, not Lycos, and i’ll be damned if its Alta Vista, I’m talking about Yahoo. Yes, like the owners of Google, the creators of Yahoo also went to Stanford. Must be a good school huh? I think many academics and those on wall street would agree. The companies Google and Yahoo are both worth billions bringing in more billions every year, and millions every single day. No wonder Wall Street is smiling on Yahoo, Inc shares right now, as of 9:45 eastern this May 4th, the stock has raised 15% today alone. It looks like the Remond software giant is very serious about this bid. Apparently Microsoft was in talks a few months back and the offer of 50 BILLION was declined. I’m not sure what the full market value of Microsoft is, but that is more money than the GNPof many countries. For instance, the Chrysler arm of http://www.daimlerchrysler.com/ is valued at about 7 billion, and Rupert Murdoch is trying to buy the entire Dow Jones (wall street journal, index, etc) for 6 billion. The Yahoo deal is almost 10 times as large.
So considering how fast Google is tearing up on-line advertising, and how badly Microsoft is losing in search, I would not be surprised if the Redmond team hedges their losses with a company like Yahoo. It would bring added equity to Microsoft and give them a massive jolt in both on-line ad exposure and consumer confidence. Why? people like yahoo, not enough to switch from Google right now, but that could change just as people went to Google from Yahoo. So is MSN buys Yahoo, what will Mountain view answer with? A WWDC talk with Eric Schmidt and Steve Jobs? We might find out as soon as the second week.