Or – Microsoft back on track with a deal with Yahoo?

Ok, Ive got a confession.  Im a real fan of Monty Python, and when I read this morning that according to the Times News Group, Microsoft has just started discussions again of a deal with Yahoo with  $20 billion mentioned,  I was put in mind of this scene from “The Life of Brian”.  Could this be a close representation of the Ballmer discussions?  Ill let you decide.   Certainly watching Ballmer on Youtube and some of his “unique” behaviour, I wouldnt be surprised.

http://uk.youtube.com/watch?v=3n3LL338aGA

Apparently the deal will allow Microsoft to manage Yahoo’s search business, with an option to buy for $20 billion.  It is reported that MS would invest $5m immediately (and there would be another $5 billion from other investors)    The article comes from the Times Newsgroup, and is a recommended read.

So this is a little different to what Ballmer was saying a few weeks ago, and to be honest I believed that MS would wait a little longer for Yahoo to further drive itself into the ground, thus lowering the price even further.  It is obvious to me that MS is very worried by Google and maybe considers if it waits for the price of Yahoo to drop further, it wont be such a valuable asset in the battle to get the better of Google.

The problem MS has IMO is twofold.   Firstly the image of MS is severely depleated (IMO) and that cant be something which would be advertising customers will be happy about.  Secondly Google is a household name, “google me” is a common phrase, and Ive only ever met one person in my circle of friends who knew what MSlive was.

So there you have it.  If I may though, I would like to remind everyone about a little history between these two before.  The year was 2005 and the allegation was that Microsoft was censoring Chinese blogs that mentioned independence. Click here to read and then consider that these people are wanting to overtake Google as a viable search product.

Article by Goblin[RFD]