NYTimes reports Microsoft & Yahoo Merger talks resuming - Yahoo shares rocket 18%
The New York Times story before trading started this morning of renewed merger talks between Microsoft and Yahoo has put Yahoo's stock up around 17% at time of writing.
There is of course a flurry of speculation, but so far no specific comment has come from either Yahoo or Microsoft. The main driver for this move is thought to be Microsoft's growing concern about losing ground to Google, with its recent acquisition of Double Click, which both Yahoo and Microsoft had expressed interest in.
But many commentators are suggesting that a marriage of Yahoo & Microsoft, despite Yahoo's new search software, will be a bad move, as both are too bureaucratic and slow moving to compete with the likes of the agile and lean Google. Matthew Ingram in Toronto compares it to tying two icebergs together, and Techmeme.com is an excellent starting point for following the story.
There is an unconfirmed story circulating from the West coast this morning that Google may be thinking of moving on Yahoo in a hostile bid, and this may be forcing Microsoft's hand - a similar theory is found here at makeyougohmm.com where the advice is to watch out for eBay and Yahoo joining forces as a more natural fit.
What's your take on this, Ecademy members?