WSJ: Microsoft + Yahoo Partnership to Fight Google?
From today's WSJ's "heard on the street section" comes A Microsoft, Yahoo Tie-Up?.

The effort:
"One faction within Microsoft Corp. is promoting a bold strategy in the company's battle with Google Inc: Join forces with Yahoo Inc."

The sticking points in the deal:
"Two wild cards remain: Microsoft Chief Executive Steve Ballmer, who has historically shunned large acquisitions, and Yahoo co-founder Jerry Yang, whose support would be key to bringing the necessary Yahoo shareholders on board for a deal."

Berkowitz as MSFT savior?
"Mr. Berkowitz, the former chief executive of search site Ask.com, is viewed as a likely deal maker at MSN, having completed more than 40 acquisitions in his career, according to a person close to the matter."

Hank Vigil as MSFT savior?
"Mr. Vigil has a long history of forging (and at times fixing) relations with other companies in the industries in which Microsoft plays. Last year Mr. Vigil led Microsoft in talks to form a joint venture with Time Warner Inc. that would have combined MSN and the media giant's AOL unit. The plan was scuttled after Google swooped in with $1 billion and took a 5% stake in AOL. Mr. Vigil couldn't be reached for comment."

This is not news til it happens...

Also interesting... how major players at MSFT are using the media to try to make this Yahoo merger happen by getting word out to shareholders and folks like me who like to speculate ;)

Related items:
Google Dumped by Amazon's Alexa for MSN Live: Google Dump #1
Ask's CEO Steve Berkowitz Jumps to MSN
Google + AOL Pundit Roundup

I saw it first from Rafat Ali: MSFT-Yahoo Tie-Up Rumors; More Like Wishful Thinking For Now

Update 1, Ballmer Internal Memo:

We have made and we continue to make the investments needed to ensure strong growth for our core businesses, while delivering the innovation that is essential to establishing a leadership position where we see opportunities in businesses such as entertainment, mobile devices, search and software-based Internet services.

Probably no relationship to the WSJ story... but a sure sign that MSFT is about to make some big moves.

Internal memo: Ballmer on Wall Street reaction (source)
Ballmer: "Big, Bold Bet" needed to beat Google

(update Via Senior Beal.)

Update 2: Sullivan says yes:

I was talking with Kevin Delaney of the Wall Street Journal on Monday about search things in general and mentioned the sense it makes for Microsoft and Yahoo to get together.

Yahoo & Microsoft Have Talked Partnering, Merging (Danny Sullivan... who's thinking it might make sense...)

Update 3: Battelle puts his foot down:

What the F? This seems to be a non story. Everyone talks to everyone about everything, all the time. End of story.

Yahoo and MSFT: No Way
Garrett French - MarketSmart Interactive | permalink | +marktd |