by SEO Consultant
J. Cave
J. Cave
It doesn't seem so long ago that Microsoft and Yahoo! were making headlines with rumours of a possible merger - and now the companies are stealing the spotlight again. After a series of dizzying twists and turns, the companies were previously unable to reach a resolution but that hasn't stopped them meeting to discuss other alternatives. Last week Yahoo!'s Carol Bartz met with Microsoft's Steve Ballmer to look at ways in which the two companies could work together to fight off the dominating Google. Although the conversations have for the most part been confidential, the two search engines are believed to be looking at ways in which advertising efforts could be combined, according to a report from the New York Times.
Talks of an alliance come at a time when analysts are discussing just how much more of the market share Google will swipe this year.
Last year, it seemed that Yahoo!, or former CEO Jerry Yang at least, believed it was possible that Yahoo! could retain its ground as a powerful rival to Google. Now the two companies appear to be exploring ways to cohabit the number two spot.
After talks of a merger fell apart last year, Microsoft concentrated on developing its technical capabilities. This development has focussed on hiring some of the biggest names in search, as well as developing creative products such as Kumo.
While Microsoft may be creating a more attractive technological dashboard for advertisers, it has failed to draw in enough users to make those search products truly lucrative. The latest figures from Comscore suggest Microsoft's hold of the search market has fallen to just 8.2 per cent.
A combined advertising deal with Yahoo!, which has slipped to around 20.6 per cent share, could enable the two companies to reach a market slice of almost 30 per cent. For two companies who are expected to lose even more ground to Google this year, such a proposal could make a lot of sense.
While the fresh talks between Microsoft and Yahoo have been widely reported by the media, most newspapers have relied on speculation to fill in the white space. Bartz and Ballmer have kept most of their discussions private and reporters and shareholders alike will have to wait patiently before any official statements are released.
