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Not far behind

Microsoft taking over Yahoo might pose a big challenge to Google

The news that Microsoft might be mulling a takeover of Yahoo is a shock to many, but it smacks of the inevitable.

While Yahoo might be putting up a fight in Web 2.0 services with Google, the giant from Seattle has not even been allowed a footprint in the Internet’s most lucrative emerging arena.

Microsoft is rumoured to be readying to table a $ 50 billion bid for Yahoo, in a deal that would easily be the biggest ever.

Analysts watching the developments are fiercely divided on the outcome of the bid, but unanimously agree that the future will see increasing cooperation between the two.

Yahoo has disappointed in terms of performance in recent times with profits falling by over 11 per cent and it has not helped that Google is forever in innovate, make profit and acquire mode.

Google’s takeover of DoubleClick, an online advertising firm, recently came as a blow to both the companies.

Yahoo started work on a new software for its advertising and put it on stream, while Microsoft is still wondering about its strategy.

It is more important that the takeover goes through for Microsoft because it is in danger of never making ground to Google.

ANAND SANKAR

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