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Microsoft, Yahoo "hot and heavy" in deal talks?

updated 10:55 am EDT, Tue April 21, 2009

MS and Yahoo in Hot Talks

Microsoft and Yahoo are now deeper into talks about possible ad and search deals, new tips show. All Things D understands that the initial exploratory talks are now "hot and heavy" and that an agreement could be struck "sooner than some expect." Most of the eagerness is said to be on Microsoft's side, where the company is most interested in a deal; Yahoo is receptive but more cautious.

Neither of the involved companies has agreed to comment on the subject.

Microsoft's desire to reach a deal with Yahoo is believed to stem from its own faltering Live search, which represents just 10 percent of US online searches; Yahoo represents 15 percent, while Google dominates both with 64 percent. Previous rumors of a deal would have Microsoft run search ads on Yahoo's pages while Yahoo would take control of ads outside of search, such as banners.

by MacNN Staff



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