Microsoft reconsiders Yahoo! partnership
Yahoo! is also having to keep an eye on a potential proxy fight from shareholders, led my billionaire investor Carl Icahn who has criticised the Yahoo! board for their handling of the Microsoft offer. The rumours are that Microsoft are discussion some form of joint advertising arrangement with Yahoo!, based on search advertising or targeted display advertising, to try to ward off a stronger partnership being formed between Yahoo! and Google.
There's almost an inevitability that the 3 main players within the search market will merge in some format eventually -and most likely a Microsoft-Yahoo! deal - which will not be good news for the overall market and advertisers, but probably a natural progression for the runners-up to try to tackle Google's strengthening monopoly.