Yahoo! is damned big and important, doesn't need Microsoft Deal

Posted Jun 4th 2009 2:00PM by Tom Johansmeyer
Filed under: Deals, Microsoft (MSFT), Yahoo! (YHOO)

Yahoo Inc (NASDAQ: YHOO) claims not to be under pressure to ink a search deal with Microsoft (NASDAQ: MSFT). You know what that means ...

The two distant followers in the search engine space were considering a partnership, but Microsoft's newly released Bing search engine raises questions as to how committed Microsoft would be to a deal. Yahoo CEO Carol Bartz was quick to explain, according to Reuters, that "Yahoo doesn't have to do anything with Microsoft about anything" and that it is "a damned big, important site."

The benefits of the deal are salient, mostly involving scale and increased monetization of Yahoo's search service. The second largest search company estimates that it would save up to $700 million in a year through the Microsoft partnership.

Even though Yahoo is "damned big," Bartz believes that the acquisition of smaller companies that could be folded easily would be a good use of the company's cash.

Tags: microsoft, msft, search, search engine, search engine marketing, search engines, SearchEngine, SearchEngineMarketing, SearchEngines, yahoo, yhoo