The New York Times reported this morning that software king Microsoft (NASDAQ:MSFT) and search giant Google have been exploring the idea of a partnership -- or even a merger.
Such a deal makes sense, especially for Microsoft. It's been wanting to grab a slice of the lucrative search business that captures advertising dollars on a pay-per-click basis. It could jump into the market on its own, or just go with the existing marquee name. Google, along with Yahoo!-owned rival Overture (NASDAQ:YHOO), dominates the pay-per-click market.
The Times article, citing unnamed company executives, says Google probably prefers to pass on the deal for now, figuring an initial public offering makes more sense. The company does have to keep one thing in mind, however: What would happen to the value of its IPO if Microsoft announced intentions of entering the market in a big way?
In the meantime, consider what might happen if the deal does go through.
Top 10 Implications of Microsoft Buying Google
10. Free worm with every search.
9. Google renamed "Microoosoooft."
8. Google becomes default search engine on all computers; attempts to use Yahoo! causes PCs to emit a pungent odor.
7. The search choices on Google will change from "Web," "Images," "Groups," "Directory," and "News" to "Web," "Shop Microsoft," "Buy From Microsoft Because You Have No Choice," and "Steve Ballmer Dancing."
6. Google Image Search will not show Microsoft's dark side.
5. All searches on the term "Steve Jobs" will return bios on Art Garfunkel, Ike Turner, Burt Ward (a.k.a. Robin), and other second fiddles.
4. Long speeches from Bill Gates about how "Smart Appliances" will allow owners to use Google to search for what's in their fridge. When pressed, Gates admits such appliances are only available in his mansion, and that he's never actually seen his refrigerator.
3. Microsoft uses Google technology to search for weapons of monopolistic destruction.
2. All searches on the term "Larry Ellison" will produce lists of garbage-collection websites.
1. "Bill Gates is richer than Warren Buffett" subliminally inserted into all search results.
