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Yahoo turns down Microsoft's acquisition offer

If there was a piece of news that really grabbed my attention this week it's when Yahoo said it has refused Microsoft's stake acquisition offer. In essence, Yahoo CEO Terry Semel flatly told Bill Gates that the search business has been formed and that now it's a bit late to enter the scene, even for a company with very deep pockets such as Microsoft!

The offer was to acquire part of Yahoo’s search business. Semel said that negotiations about Microsoft acquiring the company, in whole or in part had NOT taken place.

Such comments to media executives reflect the various conversations Internet companies are having right now about potential alliances as they jostle for position in the very lucrative search business that is currently dominated by Google.

Terry Semel did say that he had talked to Microsoft about continuing their partnership under which Microsoft’s MSN online arm has used Yahoo for search advertising.

MSN has decided to end this and plans a rival advertising service to Google and Yahoo.

“Microsoft taking over Yahoo – that conversation has never come up,” Mr Semel said at a talk organised by the Newhouse communications school of Syracuse University. “[We discussed] search, and Microsoft co-owning some of our search. I will not sell a piece of search – it is like selling your right arm while keeping your left; it does not make any sense.”

MSN plans a search service aimed at capturing some of the billions of dollars of search advertising generated by Google and Yahoo. Google dominates the market, which has become the biggest source of revenue for internet advertising. This week, Google said it had refocused its development activities to channel more resources into its core search engine.

“My impartial advice to Microsoft is that you have no chance,” Mr Semel said. “The search business has been formed.”

However, Mr Semel said it was possible the search business itself could change. In particular, the popularity of search products in Korea and Taiwan that are based on people answering questions rather than electronic searches of the web might be a future model.

“I do not expect [web] search to decline but it may not be the way you do it two or three years later,” he said. “Is web search the killer application or just the first? Knowledge search, as they call it in Korea, or social search, as we call it, has blown through the roof. There may be changing dynamics.”

My take on all of this
So, there you have it folks: the search business HAS been formed... I tend to agree with Terry Semel, a man I like and respect for his accomplishments at Yahoo. Before joining Yahoo as its CEO, Terry has worked in the Hollywood entertainment industry for about 20 years, so he's no stranger to that field. Some even say he might even have 'an ace up his sleeve' and that's fine with me.

Let's watch these developments closely, as the times, they are 'a changing!


Well, thats it for this week. Have a pleasant and relaxing weekend. I will see you all next Saturday!

Serge Thibodeau,
Editor,
The Rank for $ales Weekly Newsletter™.

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Search engine industry news corner:
Read the most important search engine news that happened this week by clicking here. For the latest search engine trends, gossip, rumors, etc., visit my search engine blog at www.sergethibodeau.com

About Rank for $ales
In business since 1997, Rank for $ales is a professional search engine optimization firm involved in search engine positioning, placement and search engine marketing services. We work with small and medium size businesses, as well as with Fortune 500 companies, organizations and all levels of government.

Rank for $ales can be reached via email at info@rankforsales.com or you can call from anywhere in the US or Canada, via our toll free number at 1-800-631-3221. Our offices are located near Montreal, Quebec, Canada.

Visit our web site at www.rankforsales.com

About Serge Thibodeau
Serge Thibodeau is a professional search engine optimization consultant and practioner. Since 1995, Serge Thibodeau has been involved in some large SEO projects. Additionally, Serge was the project leader in the development of Pagina+ (tm), a powerful SEO solution for businesses and corporations of all sizes.

Pagina+™ is offered by Rank for $ale's parent company: GCIS Inc. Besides serving as editor and CEO of Rank for $ales, Serge Thibodeau currently writes professional search engine optimization articles in some of the following publications:

Renting links to your website will significantly increase your website's visibility in the major search engines. Find out how by clicking here.
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SEO Today (www.seotoday.com)
Business Week (www.businessweek.com)
The New York Post (www.nypost.com)
Dow Jones (www.dowjones.com)
Site Pro News (www.sitepronews.com)
Lil Engine (www.lilengine.com)
ISEDB (www.isedb.com)
Business 5.0 (www.business50.com)
High Rankings (www.highrankings.com)
Search Engine Guild (www.searchguild.com)
SEO Radar (www.seoradar.com)
Search Engine News (www.searchenginenews.ca)
Search Engine Journal (www.searchenginejournal.com)
Escalate (www.escalate.ca)
Tech Blog (www.techblog.org)
Montreal Web Design (www.montrealwebdesign.org)
plus many more.

Additionally, Serge Thibodeau has successfully developed and deployed Global Business Listing, a powerful and flexible 'paid inclusion' search engine that will further increase any company's rankings and visibility in the major search engines. On the Web, at: www.globalbusinesslisting.com

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