Microsoft, Yahoo! in Merger Talks

NEW YORK, May 4: Microsoft and Yahoo! are said to have
resumed discussions about a possible merger, according to the Wall Street
Journal.

The two companies have discussed combining in the past, as
both look to take on Google’s dominance online. The talks have picked up steam,
reports indicate, following Google’s acquisition of DoubleClick for $3.1
billion—Microsoft is said to have also wanted to buy the digital
marketing company.

For Microsoft, a Yahoo! tie-up would boost its ability to
attract advertisers to its online businesses. Yahoo!, meanwhile, could benefit
from Microsoft’s technical expertise, particularly for its new online ad
system, dubbed Project Panorama.