Report: Microsoft mulled Yahoo acquisition to defeat Google

WinInfo | at | by Mike

A report published in "The Wall Street Journal" yesterday notes that Microsoft held talks with Yahoo about a possible acquisition over the past year. The goal, the report says, was to quickly improve Microsoft's position in the online services market against Google, its most bitter rival.

While any acquisition that large would surely come under antitrust scrutiny, the seemingly abandoned scheme is also notable for other reasons. Microsoft's products have often languished in the market for several years before taking off; many had assumed that the company would simply back its money losing online services until they started turning a profit. Buying Yahoo would accelerate those efforts by combining Microsoft's best services with Yahoo's best services.