Microsoft Wants Yahoo Deal After Hiring Former Executive Qi Lu

By: Sara Smith
Staff Writer
Published: Dec 5, 2008

Microsoft CEO Steve Ballmer wants a deal with Yahoo as a search ad union. Ballmer stated that a deal between the two business technology companies would be beneficial. Analysts say that Yahoo still encourages Microsoft to treat any deal as a takeover bid.

Microsoft Corp chief Steve Ballmer on Friday talked about a possible deal with search engine company Yahoo. Microsoft has downplayed any Yahoo takeover possibility since talks broke over six months ago. Ballmer simply wants a search deal, not a company merger.

"Together we would have more advertisers... which means we'd have more relevant ads on our page," Microsoft CEO Steve Ballmer said in a statement. "Most importantly, Google would have perhaps a real credible competitor sooner," he added.

The past three weeks have shown two possible deals in the making. A former AOL chief wants to buy Yahoo and is currently trying to get raise money. Microsoft made it known that it wants to buy only Yahoo search for $20 billion and not the entire company.

The latest comments from Ballmer reilerates a search deal, but not exactly a company acquisition. However, analysts say that investors on both sides want a deal.

Earlier this week, Microsoft hired former Yahoo executive Qi Lu to run its online services business. Qi Lu was Yahoo's top advertising executives.