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Rumors are flying again that Microsoft may acquire its competitor Yahoo. Recent reports indicate that Microsoft might not purchase all of the Sunnyvale-based Yahoo, but possibly part of it.
The main area that Microsoft is interested in is the area of search. At a technology and media summit this week in New York, Microsoft CEO Steve Ballmer said a deal with Yahoo would help to advance Microsoft Live Search. If a deal did go through, Microsoft would likely attract more search users, which would also mean more advertisers and advertising revenue.
Ballmer alleges that he has had only one conversation with Yahoo's new CEO Carol Bartz since she has held the position. Most will remember Yahoo's former CEO, Jerry Yang, refused Microsoft's takeover offer of $47.5 billion last year.
Microsoft still continues its efforts to build its own search technology that would better compete with Yahoo and Google. The company even released the internal name of its new search development called Kumo. For years, industry experts have said that Microsoft needs to decide on one single brand and stick with it.
Ballmer said that when the new search platform is released that Kumo would not be the final name.
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