Search Engine Optimization News Blog

The Financial Times interviewed Steve Ballmer, Microsoft’s CEO, and Ballmer dropped a bombshell – Microsoft is once more interested in Yahoo.

At least, they want the search part of it. “We now have someone in place running our online business [Yahoo's former search chief, Qi Lu, has joined the Microsoft team], and Yahoo’s out looking for a new CEO. If a search deal is to be made, it’s probably to be made in the interim period for new leaders in both places.”

This follows the predictions made by many in the wake of the failed Google / Yahoo deal; claims that Microsoft was just biding their time before renewing efforts to secure Yahoo. They offered for the entire company at record breaking prices last year, only to be turned down repeatedly by Jerry Yang against strong disapproval from shareholders.

The larger deal is definitely off the table along with the hefty offer – but a deal for Yahoo search is still quite a big event. Yahoo is a strong brand and had excellent high end staff that would be of use to Microsoft as they gear up for harder fights with Google than ever.

Google is encroaching on MSN’s formerly unassailable browser market, pushing Firefox and presenting their own browser download, Google Chrome. With the advent of cloud computing , the threat to Microsoft from Google continues to grow; particularly as Microsoft’s search services have never connected as well with the public. Accessing the Yahoo name could change all that.

So what sort of deal will emerge? Do these search engines need to come to an amicable decision? Or is the competition between the two second tier engines healthy and shouldn’t be compromised by any sort of deal? Is this just another false alarm in a long line of hype? Time will tell.