Make your bloody mind up!

Did you read this article: ‘Microsoft walks away‘? I held up my hand and admitted I was wrong. Now I’m going to put my hand back down. Far from being end game, it would appear that Yahoo are still interested in a deal. Jerry Yang admitted to have mixed feeling over the breakdown of negotiations (probably due to the investor backlash). Yang has suggested that the door is still open to Microsoft - if they’re interested. Share holder believe that the software giant is still interested so let’s see how this plays out over the next few months.

Googley eyes are watching with interest.

Google has no doubt been watching events very closely. The merger of Microsoft and Yahoo would present a formidable opponent in both the search and advertising arenas. It would be fairly reasonable to suggest that recent announcements, such as availablity of Salesforce software through Google apps, have been designed to counter some of competition. The primary source of revenue for Google comes from advertising. If a Yahoo/Microsoft merger started to significantly eat at this source of cash the company would be in real trouble.

Don’t expect Google to slow down either. The merger could still happen. This could cause Google some real pain. I fully expect a whole series of announcements and new applications coming out of the search giants labs, just in case.

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