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Microsoft and Yahoo are reportedly working on a new deal

Even though Microsoft was unable to purchase Yahoo outright last year when Jerry Yang was in control of the slumping Internet search giant, Microsoft CEO Steve Ballmer is chatting with Yahoo regarding a possible advertising deal.

Although unconfirmed at this point, it's possible Yahoo search ads would be sold by Microsoft as Yahoo manages all of Microsoft's display ads.  Both companies have lost ground to Google, and a possible ad deal should help Microsoft and Yahoo to claw into a dominant No. 2 position.  More importantly, this could open the door for both companies to work together in the search advertising market, with both companies far behind Google.

This marks the first time the two companies discussed a possible deal since Yahoo turned down Microsoft's buyout offer in 2008.  Now that Yahoo has a new CEO, Carol Bartz, analysts expected the two sides to begin negotiations regarding possible business deals immediately -- Ballmer and Bartz have talked just once since January.

Last month, Bartz said any and all talks with Microsoft would remain private, as to not tip off Google to any pending deals aimed at the Mountain View-based company's dominance.

Microsoft is working on, a new Web search engine, and a confirmed deal with Yahoo to work on the new replacement may help in new advertisers.

Microsoft made an unsolicited offer of $47.5 billion last year, and though both sides were in serious negotiations, Yahoo believed the offer was undervalued.  The deal eventually fell apart, and caused stockholders and executives to force Yang out of the company.

Ballmer became interested in Yahoo's search business, but that deal was unable to come to fruition as the two sides couldn't agree to a fair price.

Both Yahoo and Microsoft declined to talk to reporters about the possible conversations -- and negotiations between the two companies could easily fold yet again.

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Yahoo ads? Seriously?
By Lifted on 4/13/2009 6:55:58 AM , Rating: 2
I don't remember ever seeing a Yahoo ad on any site I've been to. Are these ads only displayed at Yahoo's website, or are they disguised so well that you don't notice them?

RE: Yahoo ads? Seriously?
By noirsoft on 4/13/2009 7:17:53 AM , Rating: 2
I never saw an ad for DoubleClick, but I saw plenty of ads served by DoubleClick. Same thing for Google ads. I.e. I think you misunderstood.

RE: Yahoo ads? Seriously?
By aegisofrime on 4/13/09, Rating: 0
RE: Yahoo ads? Seriously?
By mondo1234 on 4/13/2009 2:18:55 PM , Rating: 2
With some of the ISPs putting cap limits on broadband, I will be looking for a browser to block all ads and most flash content. The only thing worse than seeing advertising for free is having to pay extra for it....

RE: Yahoo ads? Seriously?
By amandahugnkiss on 4/13/2009 2:46:59 PM , Rating: 2
I would not think that they actualy block the content from being sent by the server, or that the servers are ever even aware that they are present. Don't they work on the local client and simply prevent the unwanted items from being rendered, after the bits have been downloaded from the webserver?

RE: Yahoo ads? Seriously?
By TomZ on 4/13/2009 2:58:34 PM , Rating: 2
Another possible implementation is that it modifies the browser so that it doesn't request certain content in the first place. Either approach is possible, I guess.

There are some chatter sites that suggest it works the way I suggest, e.g.,

RE: Yahoo ads? Seriously?
By amandahugnkiss on 4/13/2009 3:25:11 PM , Rating: 2
Thanks for the link, I was pretty much speculating on how it might work. After reading the posts there I still think it gets the bits over the line and then does something different based on the mode:

"The specifics vary a little depending on if you have Adblock set to "hide ad" or "remove ad". If you remove the ad, it removes the ad from the page before Firefox processes it (view source will not show the ad code)."

If the client never requests the ads the server should/could detect it and could then block the entire page (no advertisemnt, no web page for you :)). Also if it did work this way we could end up with a race scenario where developers were constantly trying to out think the next round of ad-blockers, much like the AV vendors.

I was mostly just trying to point out that using browser plug-ins (depending on their implementation) will not necessarily mean you are managing the amount of data transferred. I totally agree that it could be worked either way so please don't take this as a flame/troll statement.

RE: Yahoo ads? Seriously?
By TomZ on 4/13/2009 5:36:58 PM , Rating: 2
If the client never requests the ads the server should/could detect it and could then block the entire page (no advertisemnt, no web page for you
I'm not a web developer, but thinking about this out loud...

Browsers request the main page first, followed by the dependent content such as embedded pictures, browsers, style sheets, etc. If the ad is contained in the main document text, then the adblocker can stop it there, and the server will of course see a full serve of the ad.

If the ad is contained in an embedded object, such as a banner GIF or a flash object, then the server might be able to notice after the fact that the ad was not served, but at that point, it's kind of too late to block for that particular page serve. It could probably calculate statistics though, like ratio of ad serves to page serves.

But maybe there are some ways around this...

RE: Yahoo ads? Seriously?
By Ryanman on 4/16/2009 9:39:19 AM , Rating: 2

By nah on 4/13/2009 9:19:53 AM , Rating: 2
Before getting married, a couple should visit a marriage counselor--

Nice pic
By Wierdo on 4/13/2009 12:01:43 PM , Rating: 2
Is that a pic of Ballmer having an orgasm? I didn't know he wanted Yahoo that bad.

By Smartless on 4/13/2009 2:33:17 PM , Rating: 2
It's beginning to feel like Denise Richards and Charlie Sheen. Drama... but not too much caring.

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