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Yahoo (Slightly) Less Sought After; Microhoo Plans To Avoid Tech Snafu

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March 10th 2008
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marriage.jpgADOTAS — Yahoo Inc. has lost a suitor. As many industry watchers predicted, News Corp.’s desire for Yahoo is not as ardent as Microsoft Corp.’s.

Rupert Murdoch reportedly told investors at an annual Bear Stearns media conference today that News Corp. will not “get into a fight” with Microsoft. News Corp. had been talking to Yahoo about combining online properties, including social networking site MySpace.

Microsoft’s intentions are unwavering. It wants Yahoo’s advertising services platform – and it hopes to use it for all of its online ad activities. But if the $41.4 billion takeover of Yahoo is successful, it does not plan to merge its technology platform with Yahoo’s, according to a Financial Times report.

“Technology companies, if they dive in and just smash things together for smashing them together’s sake, it’s reckless, it’s just simply reckless,” Ray Ozzie, Microsoft’s chief software architect, who inherited the software technology role from Bill Gates in 2006, told the Financial Times.

Ozzie told the Times that he was still bullish on the deal as long as it focuses on not getting in the way of users or advertisers while the companies consolidate operations.

Yahoo and Time Warner’s AOL have also been in talks of late, but anti-trust matters may stymie that merger.



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