Microsoft pressured to ally with Yahoo?
eWEEK reports on a Wall Street Journal story that claims Microsoft has
discussions to form an alliance with rival search company Yahoo.
Microsoft reportedly contemplated either buying a chunk of Yahoo or
selling its MSN network to the company and keeping a minority stake. The
talks have since died down, but Microsoft is still said to be open to
the idea, especially considering growing pressure from shareholders to
boost MSN Search past its feeble 13.2% market
share. Yahoo is currently the second most popular search
engine with 28% of the market. Combined, MSN and Yahoo would add up to
41.2%, only 1.5% below Google's 42.7%. Microsoft also held talks to
partner up with AOL last year, but that effort was thwarted by Google's
purchase of a 5% stake in AOL last December.