Microsoft-Yahoo! takeover would be 'blind leading the blind'

26th February 2008

Microsoft's proposed takeover of struggling internet search engine and internet services provider would fail to compete with Google, it has been claimed.

At the Interactive Advertising Bureau annual conference yesterday (February 25th) commentators claimed that a merger of the companies would not be able to make the grade, especially when it comes to online advertising, according to cnet.com.

Sources - who wished to remain anonymous - told cnet.com that the combination would be "the blind leading the blind" as the companies are "both weak in their online strategies".

Another source, from the web publishing industry, stated: "Microsoft has a history of absorbing companies and building monopolies.

"I would hate for Yahoo to fall into that maelstrom. ... It's time for Microsoft to stand up and show us they can build something on their own."

Microsoft's initial offer of $45 billion (£22 billion) has been rejected by Yahoo!, which has been seen by some analysts as a desperate attempt to prevent Google from achieving an online monopoly, the BBC reports.