New Microsoft and Yahoo talks could lead to being friends… with benefits

The Globe and Mail reported today that Microsoft is again talking to Yahoo. Get the full article here.

Seen largely as a way to counter any potential Google and Yahoo advertising partnership, a new Microsoft relationship would bolster their rating and access to the market while giving Yahoo shareholder value without raising too many regulatory eyebrows around anti-trust.

The long term play

Although still relatively small compared to the desktop web market, partnering with Yahoo now means Microsoft can also get access to their leading mobile platform.

Within two years mobile advertising in Canada will include inventory for marketers that will reach beyond Carrier on-deck portals. Already we are seeing early versions of mobile search (with proximity capabilities), mobile video, and mobile social networking sites with built-in ad-serving abilities. This market is going to be massive.

It also sets up the possibility of another takeover attempt in the not so distant future.