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Microsoft-Viacom Deal Squeezes Out Yahoo

The gloves are off as Google and Microsoft slug it out for control of several booming Web sectors, from online applications to advertising services, but lost somewhere in the middle of this epic battle is Yahoo, the Web's No. 2 player. Yesterday's "round-tripping" announcement of a $500 million partnership between Microsoft and Viacom should squeeze Yahoo even further.

The Sunnyvale Calif. Web company, the largest seller of display ads, should have been in this fight, but it was not mentioned once. Chalk it up as a big loss for Yahoo to have not even been considered, especially since it already has a search partnership with Viacom. And thanks to improved efficiencies at Google, Yahoo is getting squeezed out of search, too. The Web giant should consider selling off its search monetization business.

Read the whole story at BoomTown/D: All Things Digital »

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