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Microhoo Back Again, Yawn.

I don't think anyone's missed the news about a Microsoft/Yahoo deal of some sort being back on. On Sunday Microsfot made the following announcement:

“In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties. “There of course can be no assurance that any transaction will result from these discussions.”

I haven't blogged about it until now because i've been, a) bored with Yahoo/Microsoft deal talk and b) waiting for more information to come out. Now however I'm starting to think that this deal is being underestimated. The best guess so far appears to be that Microsoft is going to buy Yahoo's Search technology and I think they're wrong with more details being due on Wednesday because at the same time as that accouncement was being made Microsoft's President of Platform and Services was emailing his department saying:

[W]e will be announcing a major new initiative... We are getting
better and better with our core algorithmic search, and at the same time, we are investing to differentiate in vertical experiences and to disrupt the current model.

Is this a nice way of saying, "Thanks for the hard work guys but our Search is still seen as crap so it's time to buy in better"? Tell me what you think.

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