Microsoft Rejected!

Bill takes one on the chin. I can almost picture Bill at the meeting with Semel…

Yahoo rebuffs Microsoft offer

“Microsoft taking over Yahoo – that conversation has never come up,” Mr Semel said at a talk organised by the Newhouse communications school of Syracuse University. “[We discussed] search, and Microsoft co-owning some of our search. I will not sell a piece of search – it is like selling your right arm while keeping your left; it does not make any sense.”

MSN plans a search service aimed at capturing some of the billions of dollars of search advertising generated by Google and Yahoo. Google dominates the market, which has become the biggest source of revenue for internet advertising. This week, Google said it had refocused its development activities to channel more resources into its core search engine.

“My impartial advice to Microsoft is that you have no chance,” Mr Semel said. “The search business has been formed.”

That last part sounds like it bleongs in the “Famous last words” category.

I say, never underestimate the MS Behemoth.