Home What's Brewing? Microsoft-Yahoo Spring Thaw

Microsoft-Yahoo Spring Thaw

After 100 days in office, negotiatons with adversaries can finally begin! We’re not talking about Barack Obama squaring off with regimes in Iran or North Korea, but Carol Bartz, who commemorated her first 100 day milestone as Yahoo’s CEO by reachng out, across the aisle, to Microsoft CEO Steve Ballmer about a Search and Advertising Partnership.

Expectation that the two technology giants would enter negotiations over Yahoo’s search business has been rising since Bartz took the reins in January. Yahoo co-founder Jerry Yang had beat back Microsoft’s effort to buy all of Yahoo last year for $47.5-billion, which soured relationships between the two companies.

Microsoft wanted to buy Yahoo chiefly to combat Google Inc’s dominance in the Internet search arena, and CEO Steve Ballmer has made it clear he would still like to do some sort of deal in that area.

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“Unless I’m fooling myself, over time I would expect there’s a good opportunity for a deal,” Mr. Ballmer told a media conference in New York last month.

Microsoft is also moving on a massive redesign and relaunch of its search brand, under the internal name Kumo, an effort that has included the hiring a whole lot of talent in the arena, mainly from Yahoo, in fact.

That includes Qi Lu, a former Yahoo tech star, who is leading all of Microsoft’s online efforts, and who will keynote the SMX Advanced Search Marketing Expo at the Bell Harbor Conferece Center , June 2-3. [24×7]

Clearwire Faces Class-Action Suit
A lawsuit seeking class action status has been filed against WiMAX operator Clearwire, according to Wireless Week.

The suit alleges that the company falsely touts its mobile WiMAX network as a reliable “always-on” alternative to cable or DSL Internet access and traditional wireline phones and imposes unlawful early termination fees when the promised service is slow, unreliable or unavailable.

The complaint accuses Clearwire of falsely advertising its Internet and phone services, alleging that Clearwire’s phone service is “far inferior to traditional landline service, as subscribers experience frequent service disruptions.” The suit also alleges that Clearwire’s early termination fee is unlawful and stymies competition.

Customers in several states where Clearwire offers fixed service are among the plaintiffs, including people in Washington, Hawaii, Minnesota and North Carolina. They seek to recover the early termination fees they have paid, as well as an injunction prohibiting Clearwire from enforcing the fees and falsely advertising its service. [24×7]


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