Wednesday, May 03, 2006

Microsoft to buy a stake in Yahoo ?

There is a story in wall street journal that microsoft is in talks with Yahoo to buy a stake in Yahoo. If this turns out to be fact then i think this would have not only big impact on how future xSP maket place develop but also marks a significant change in microsoft stratergy.
I presume fighting Google was the main reason behind this move from both yahoo and microsoft.If you look at the first quarter result of microsoft there is no growth in its MSN business compared to nearly 80% growth in revenue for google .Forcing microsft to make some real quick changes .Many analyst were expecting that microsoft will spend most of 2 billion dollar extra R&D spending in 2007 it announced would be on online service business.But I guess this yahoo talks comes as total surprise move from microsoft.But if you look back at its failed attempt to take stake in AOL, taking stake in yahoo might appear logical.
For me the most important thing would be to check out what would happen to Windows Live .

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