During the past few months it has been a touch and go confrontation between Microsoft and Yahoo. Depending on who you wished to believe, Microsoft appeared to have given up on its hostile takeover of the search company. But did anyone really think that Microsoft was finished and was not going to make another move? If you thought that, than you don’t know how Microsoft works.

Microsoft has a huge problem. That problem is Google. The threat that Google has over Microsoft is not make believe. Google has the resources and brains to dominate the Internet like no other company can. Google also has the smarts to secure a place for free applications that few can rival and that includes Microsoft who has always been the top dog in town. But Microsoft realizes that in order to compete with Google, they need an established company with all of the parts in place.

That company is Yahoo. Microsoft has tried on their own but has met with limited success. Though the software giant has tried free email, search features, and all kinds of Live offerings, they just can’t break the Google stranglehold without help. Bottom line is that Microsoft needs Yahoo in order to succeed on the Internet.

In the next few weeks, months, whatever, we will see some sort of a Microsoft - Yahoo deal coming forward. A nice outcome for both companies would be some type of a joint venture that benefits both companies. But Microsoft will eventually get Yahoo on board.

But the real question will be if this going to be enough?

What do you think? Will a Microsoft - Yahoo deal be enough to catch up with Google?

Comments welcome.

[tags]microsoft, yahoo, deal, buy, acquisition, google, search, live, msn, [/tags]