One interesting news story from Reuters today concerns rumors that Microsoft is planning to buy Yahoo. This is an obvious move for Microsoft in its fight to better compete against Google.
I am concerned, however, whether this possible deal is good for Microsoft or Yahoo. Microsoft needs to increase its presence in the online search business, but purchasing Yahoo might be too big of an acquisition to swallow and would probably cost a lot (approximately $50 billion). Yahoo may or may not also face a decline in users if the Yahoo brand name is weakened by an association with Microsoft.
"NEW YORK (Reuters) - Microsoft Corp. has stepped up its pursuit of a deal to buy Yahoo Inc., two newspapers reported on Friday, as the two companies re-enter talks to strike a deal and fend off a common competitor in Web search leader Google Inc."
Microsoft eyeing deal to buy Yahoo: reports
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