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While they may be breathing a sigh of relief at Yahoo! after seemingly escaping the clutches of Microsoft, this may still be the end of the road for the Yahoo! business with more vultures circling after they made the mistake of suggesting that they are ripe for takeover at the right price. Even though they could not agree a price with Microsoft, to many people they have sold themselves down the river….

Over the last decade life has been tough for Microsoft’s MSN searching engine and Yahoo! have not faired much better, but together it could have been such a different story. The innovation of the two boards and the massive firepower of Microsoft could have made a real difference but what does the future hold for both companies?

Yahoo!

The vultures are most definitely circling the company and it would come as no surprise to see a deal agreed with either a Venture Capital company or another of the major online conglomerates over the next few weeks. This episode has not been the best in the history of Yahoo! and they are now in a weaker position than they have ever been before.

Microsoft

Microsoft’s MSN offshoot seems to be lacking somewhat in size to attack the mighty Google and while the Yahoo! deal is a set back they have shown that they are looking ahead and making plans. Do not write off MSN as they will be back, most likely with a larger or similar sized partner in tow. This is just the start of a new life for MSN.

All in all this latest blow, after years of rumours and counter rumours about a possible merger, will further enhance the power of Google and give them a little more breathing space before they see any real contenders come forward to steal their crown. Thankfully for webmasters around the world, Google are of a size that they would never be able to make any sizeable acquisitions in the search engine world so any more growth will be purely organic.

Watch this space, there is more change to come in the not too distant future…….the landscape is changing…..

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