Microsoft Yahoo deal unlikely

MICROSOFT AND YAHOO seem to have quietly shelved any chance of a Google-busting deal according to an industry pundit who tries to predict such things.

CNET quoted Collins Stewart analyst Sandeep Aggarwal as saying that the likelihood of a Microsoft Yahoo search deal has gone down materially in recent weeks.

Such a deal was considered an 80 percent certainty a few weeks ago but it is only a 50-50 proposition now, he opined.

Aggarwal said that the main problem is how many zeros Ballmer should write on the cheque for any deal.

He added that Microsoft can't really afford to wait if it wants to buy any significant part of Yahoo. Bing might have boosted the Vole's Internet search presence but it is unlikely to do much in the long term, he reckoned.

He said that Bing can't deliver the 20 per cent search share required for Microsoft to remain sustainably, meaningfully competitive in search. He indicated that will get particularly tricky because Google is getting more aggressive both in search and in other online applications. µ