Analysts: Bartz Won't Rush Into Microsoft Deal
Yahoo's new CEO, Carol Bartz, is unlikely to sell Yahoo's search business to Microsoft unless it fits into her own plan for how to fix Yahoo, despite rumors that a deal between the two is imminent, analysts said Wednesday.
"From a search perspective, Microsoft needs Yahoo and Yahoo needs Microsoft if they are to create a credible alternative to Google," said Gartner Vice President and Fellow Neil MacDonald via e-mail. "Neither one has shown they are capable of doing this themselves and the gap is only increasing. An infusion of cash from Microsoft could enable the new CEO to reinvigorate the Yahoo brand and properties."
Yahoo cofounder Wang said he was leaving Yahoo in November after bowing to company shareholders and the board of directors, who believed he botched the opportunity to sell Yahoo's search business or the entire company to Microsoft last year.
On Tuesday, the Yahoo board picked Bartz to replace him, passing over Yahoo President Sue Decker, who was vying for the position and was a strong Wang supporter. Consequently, Decker resigned from Yahoo and will leave after a brief transition period.
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