By Mani Raj
Microsoft and Yahoo are reportedly in discussion once again about teaming up in search advertising.
This time, it will not be a merger or Microsoft's acquisition of Yahoo's search assets. According to Wall Street Journal it will be more likely Yahoo taking over Microsoft's display-advertising business. Yahoo's stock jumped 6.5 percent when this news came out.
A wide variety of ideas are being discussed by Microsoft CEO Steve Ballmer and Yahoo CEO Carol Batz, according to the Journal.
Yahoo is leading in display advertising. The Journal reports that Microsoft may hand over the reins of some of its display-advertising operations to Yahoo as their plan to create a larger collaboration which includes the overall search-advertising market.
It seems like that the two companies are searching for ways to combine their strengths against their rival Google. Microsoft owns a small percentage of search and display advertising markets which can be used as resources in a Google battle. Yahoo on the other hand offers Microsoft the ability to reach to a broader audience.
In the end, display advertising represents less than one-fifth of the $23.6 billion market for Internet advertising. But the Wall Street Journal speculates that a deal between Microsoft and Yahoo, whatever form it may take, could open doors for a larger partnership.
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