There is lot of buzz around Microsoft and Yahoo merger. Microsoft has clearly denied possibility of taking over Yahoo Inc. Any one who is using Microsoft products and watching Microsoft’s business will agree that Yahoo will loose its characteristics if Microsoft takes its business over.
There is couple of things to consider about Microsoft. First of all Microsoft is still struggling with its online search engine msn.com. Microsoft seriously lacks expertise in search area. Second point to consider, possibility of success merger and keeping Yahoo in business after merger. Looking at past, Microsoft failed to keep hotmail brand name in emai business and could not give head to head competition with gmail. Chances that Microsoft-Yahoo merger a success is close to impossible. Most software companies like Microsoft lack proven management skills to make such acquisition success. Next, Microsoft- Yahoo merger, in fact will benefit Goggle as possibility of retaining Yahoo employees is going to be big challenge. Which in turn will affect Microsoft negatively.
Therefore, there are serious practical reasons why Microsoft denying Yahoo acquit ion. It is not only matter of existence of Yahoo but also posses serious concerns to Microsoft existence.