Bartz' 'Gut Instinct' Is To Hold On To Yahoo's Search Business

This story was written by David Kaplan.
Anyone thinking that Yahoo (NSDQ: YHOO) would be making a quick deal with Microsoft (NSDQ: MSFT) for its search business had better think again. Yahoo's new CEO Carol Bartz has told staffers yesterday that the company has to weigh the positives and negatives of selling the search business to Microsoft, Dow Jones reported. And at least at this early stage, her "gut instincts" are telling her to hold on to search. Bartz did have a chat with Microsoft CEO Steve Ballmer shortly after the announcement was made that she would succeed Jerry Yang, DJ said, citing an unidentified Yahoo source. No word, however, on what the two talked about. Last week, Ballmer said that he was interested in pursuing a search deal with Yahoo once a new CEO was chosen, though some analysts were hoping that a full acquisition of Yahoo by Microsoft would be in the offing.

In the meantime, Yahoo is jettisoning its European-based contextual ad network, Content Match. The program, created as a rival to Google's AdSense, will be closed on March 31, leaving it running only sponsored search and display advertising businesses there. More details on our sister site, PCUK.

By David Kaplan