jmccormac - 2:45 am on Feb 20, 2008 (gmt 0) Regards...jmcc
The acquisition of Yahoo would provide Microsoft with a lot of intellectual property (the patents mentioned by Zafile above). It would also provide Microsoft with a working search engine infrastructure. At the moment, Microsoft is so far behind the other players that it can easily get beaten by Tier 2 search engine players. It just cannot compete with the Tier 1 players like Google and Yahoo. Instead it ends up fighting with ask.com for a bit of the market. Though the people in Microsoft search engine research may be good, they are not in the same class as those in Google and to a lesser extent Yahoo. Microsoft is still trying to index the web in the same stupid link-based manner that worked circa 1998. However the web is magnitudes bigger now and far more dynamic than it was then. Microsoft does not have enough historical data to build a good index. It does not have enough data to filter PPC and spam from its index in the way the other players have. In short, Microsoft does not have much of a clue when it comes to the business of Search. Buying Yahoo would provide that clue.