Microhoo Part Two?

April 13th, 2009 at 12:00 am

Microhoo 2

It was only sometime in February of last year that the whole Microhoo hoopla first erupted. With two tech giants on the verge of merging, it can either be exciting or scary times, depending on what perspective one looks at it. And those are the two general sentiments that came out when plans of Microsoft to buyout Yahoo last year started coming out in the news. But then, the plans fizzled out with the two camps not really reaching a common ground to make the deal possible. And from then on, that was that with the whole Microhoo thing. Or was it?

It seems that there is some sort of a revival of the Microsoft and Yahoo story. News abound that there might be a sequel to the so called Microhoo legend, this time on a different story arc. It was recently reported that Microsoft CEO Steven Ballmer is once again in talks with new Yahoo chief executive Carol Bartz. But this time, the talks seem to have no new buyout bids in store.

The talks between the two chief executives seem to deal with finding an acceptable commercial partnership that may concern certain search and advertising opportunities. Although the said talks were reportedly in its preliminary stages and also included a wide range of other topics discussed, one thing is certain- Microsoft is still interested in what Yahoo has to offer.

Speculations may abound on what really would come out of the new Microsoft-Yahoo talks. But one thing that comes to mind still has the software giant trying to get its hands anew into the online search market. And with this move, it might again be in the way of facing up with another giant, Google.

It is no secret that Microsoft has wanted to enter into the online search market for a long time now. It actually did by creating its own Live Search aka MSN Search. But it has yet to make even a tiny dent into the veritable armor of Google in terms of market share. It has done so for years without much success. It is quite a thick armor to pierce, with Google enjoying around 60 percent of the online search market.

Maybe that is the reason why Microsoft remains interested in partnering with Yahoo, a distant second on the online search market enjoying about 20 percent of the overall online searches. Although quite a long way from Google’s share on the market, Yahoo still has the advantage of being the closest rival when it comes to online search. Any advantage is good and that is what Microsoft may be trying to acquire with its renewed partnership talks with Yahoo.

Speculations are what all these might be considered for now. But it seems so intriguing why the software giant is still trying to make out any moves in trying to partner with the company that it has locked horns with (in a way) just a little over a year ago. An entry into the online search market seems to be the only striking motive available. But then, with the unpredictability hanging over most markets today, who can ever know for sure?