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 Does Microsoft still want to buy Yahoo?

If it does, that’s cool with the US Department of Justice’s antitrust division.

When Steve and the Boyz said they wanted Yahoo, some people thought that might create a bit of a conflict, so the DoJ unit launched a probe.

And now it’s an advertising expert.

“The Antitrust Division obtained extensive information from Microsoft, Yahoo! and a wide range of market participants”, it says in a DoJ statement.

“Experience and expertise developed during our 2008 investigation of the proposed Google/Yahoo! search advertising agreement also informed our analysis.”

Microsoft and Mr Purple “have finally figured out a way to jointly go after you and your money, calling their 10 year deal an agreement that’ll, ‘improve the Web search experience for users and advertisers, and deliver sustained innovation to the industry’,” said p2pnet last summer, continuing:

“Microsoft will now power Yahoo search while Yahoo, ‘will become the exclusive worldwide relationship sales force for both companies ‘ premium search advertisers,’ say the two new buddies in a statement.”

Here’s the DoJ’s thinking >>>

“The search and paid search advertising industry is characterized by an unusual relationship between scale and competitive performance. The transaction will enhance Microsoft’s competitive performance because it will have access to a larger set of queries, which should accelerate the automated learning of Microsoft’s search and paid search algorithms and enhance Microsoft’s ability to serve more relevant search results and paid search listings, particularly with respect to rare or “tail” queries.

The increased queries received by the combined operation will further provide Microsoft with a much larger pool of data than it currently has or is likely to obtain without this transaction. This larger data pool may enable more effective testing and thus more rapid innovation of potential new search-related products, changes in the presentation of search results and paid search listings, other changes in the user interface, and changes in the search or paid search algorithms.

This enhanced performance, if realized, should exert correspondingly greater competitive pressure in the marketplace.

But the DoJ isn’t letting its guard down.

“Although this particular transaction is not likely to cause harm, the department will continue to be vigilant in our enforcement of the antitrust laws in the search and paid search advertising industry” it assures us.

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