It looks like it's finally happening: BoomTown and Wall Street Journal report that a deal is very close and could be announced as soon as tomorrow.
Sources said Microsoft search technology will be used on Yahoo sites, although Yahoo would still sell search ads, which makes the deal much smaller than ones previously envisioned, which included Microsoft taking over both search and search advertising.If it goes forward, I wonder what this means for the search and advertising teams at Yahoo!. Will the teams re-organize, be cut, or become part of Microsoft? What is the future of Yahoo!'s ad platform that they have invested a lot of time and money into?
I'm apprehensive about the implications of the deal for Y! and the great people there. I also think that Y! provides a solid third alternative search platform. Having only two major engines decreases diversity, which could be problematic in the future.