Monday merger madness

By: IT News Blog

Spurred to action by Google's success in the online advertising business, rumours of possible merger/acquisition talks between Microsoft and Yahoo are heating up. ComputerWorld reports the two companies are at the negotiating table, with analysts saying it's only a matter of when, not if.

On the blogs, Henry Blodget says a marriage makes sense as long as the new entity immediately spins off the Yahoo-MSN business, but predicts that will never happen. Nicholas Carr agrees such a spin-off, while logical, is unlikely, as Microsoft believes advertising has become central to the software business. Elsewhere, Scott Rosenberg fears an AOL/Time Warner redux, while Brier Dudley has some issues with the media.

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