Rumours from silicon valley this week point towards Microsoft purchasing Yahoo Search and then using $20 billion to get hold of Facebook.
Microsoft picking up the Yahoo search business. Word is that this deal will be done this week. While this is not surprising, it does bring to question the motives and plans of Microsoft.
Techmeme is buzzing about the latest Microsoft Yahoo talks that has Microsoft buying the Yahoo Search business only. Here is Microsoft's and Yahoo official statements.
Why would such a complicated transaction (just Yahoo search with all the headaches and all) be in the cards for Microsoft? After the failed bid for $40 plus billion for all of Yahoo, Microsoft's intentions are clear. Buy the search business from Yahoo and take that team and go spend at least 20 billion for Facebook. Integrating the search team at Yahoo with Facebook puts a formidable army to take on Google.