Not-so-breaking Microsoft news: Yahoo deal still possible


deal.jpgADOTAS — Microsoft CEO Steve Ballmer had few new things to say at the McGraw-Hill media conference, though he gave some pretty weak responses to why the company was weak in search.

Regarding search, Ballmer said the company had to start essentially from scratch about 6 years ago. Most of the innovation is still come in search. Search hasn’t changed much in the last 5 years, 10 years. He also said that there wasn’t a lot of room to innovate in search and that Google has put in more resources (ya’think?) and has put more marketing effort into search while Microsoft has a number of areas it concentrates on. (as for Kumo? who knows)

Ballmer admitted to talking to Yahoo CEO Carol Bartz, but not much more:

“Whether or not there’s a partnership to be had with Yahoo, we think our own innovation… it’s not about Yahoo’s technology. It’s really about getting the pooled volume, because you actually can improve your product faster if you have more users.” If you have more advertisers, you can improve the product as well. “There are returns to scale. And putting the scale together is valuable.”

“With that as context, we’re largely on the same strategy, with or without a partnership with Yahoo.”


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