Yahoo! Turns Down Microsoft Offer

“My impartial advice to Microsoft is that you have no chance. The search business has been formed.” Ouch! That is what Yahoo! Chairman and Chief Executive Terry Semel was quoted as saying at a talk organized by the Newhouse communications school of Syracuse University. He also stated that he had turned down an offer from Microsoft to buy a stake in Yahoo’s search business and that discussions about Bill Gates’ software group acquiring the company had not taken place.

“Microsoft taking over Yahoo – that conversation has never come up,” Terry says. “[We discussed] search, and Microsoft co-owning some of our search. I will not sell a piece of search – it is like selling your right arm while keeping your left; it does not make any sense.”

This in light of news that broke last week questioning whether Microsoft and Yahoo would combine to combat current search leader, Google. I for one am glad of Yahoo!’s position. While Microsoft is searching for ways to capture more market share in search, I don’t see a Yahoo!/Microsoft partnership benefiting Yahoo! in any way at all. You can read more coverage at The Financial Times.