A Yahoo Microsoft Deal After All?

Yahoo just released 1st quarter earnings and they were tepid at best.  Yahoo generated revenue of $1.58 billion, 13 percent lower than the same period last year.  The company reported  net profit in the first quarter of $118 million,just shy of expectations. 

In another bit of dark news, Yahoo is preparing to enter into a third dramatic round of layoffs.  But there is some potentially good news as well.  

 The Boom Town Blog is reporting that Microsoft and Yahoo may in fact be very close to a “Search and Advertising Partnership.”  That would be welcome news to Yahoo shareholders who have taken a bath in the company’s stock since the bust of the Microsoft attempt to buy the company last year. 

Much has changed since then, former CEO Jerry Yang has been replaced by Carol Bartz, the company has been looking to lower costs and refocus its efforts, and shareholders continue to place pressure on the company to increase value or sell. 

If a Yahoo Microsoft deal is reached, we’ll all be able to hear the cursing from Google Headquarters.