People Search Digest

They’re a little late to the party, but Microsoft finally one-upped Google’s search merger with social networking giant Myspace. Yesterday, Microsoft announced that their budding relationship with Facebook would soon expand to include integration of the Microsoft Live search function on the popular social networking site. Details are scant as of now, but we do know that Microsoft will be featuring advertising - both traditional and sponsored results - on Facebook. This is merely consummation of the stake Microsoft purchased in Facebook earlier this year.

Google did the same with Myspace in 2006, much to the chagrin of Microsoft, who was engaged in a fierce bidding war for the site’s favors. They were beat that time, but the recent merger with Facebook could prove to be highly profitable in the long run. Facebook membership and usage is on the rise, while Myspace is experiencing slower growth. Of course, Google has had difficulty making money from the Myspace deal, so it’s possible Microsoft will have similar trouble with Facebook. Google attributes its failures to the general difficulty of generating revenue on a social site; if Microsoft succeeds where the online giant failed, Google’s theory will be pretty much destroyed.
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Google is taking a break from its ongoing tussle with Microsoft to test a search interface it has been developing for about a year on randomly determined users. The new interface melds the thumbs-up-thumbs-down social networking ethos of Digg with your basic Google search. Essentially the new Google search allows users to rate search results with the click of a button. A negative review of any search result causes it to disappear from the list of results in a magic puff of cyber smoke.

Techcrunch has a video detailing exactly how the new search interface will work. In addition to the rating system, users will be given the option of adding comments to the search results and their username link to a public profile, thus giving the search engine sheen of social networking power that has worked so well for Digg (which, coincidentally, is being bid on by both Microsoft and Google).

It’s an interesting concept, and perhaps even an enticing one with its promise of an exciting integration of two hitherto separate online models. It is a more intimate version of Google’s original search premise, which ranks search results based on the quantity of links available. The new interface will give users the power to rank results for themselves, independent of Google’s algorithm - in essence, make a personalized Google Bomb with every click.
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Will the Shakespearean drama that is the Yahoo-Microsoft merger ever end? Not if Carl Icahn has anything to say about it. As you may recall, Icahn is the bullyish investor who advocated a total takeover of Yahoo’s board following the breakdown of Microsoft merger talks. Though Yahoo rebounded from its ill-fated affair with Microsoft by jumping almost immediately into bed with Microsoft enemy number one Google, it seems that Icahn still hasn’t finished using his scorched earth tactics to beat Yahoo CEO Jerry Yang over the head with the power of his 4% share of Yahoo stock.

Icahn announced recently that he had been in private talks with Microsoft CEO Steve Ballmer about re-opening negotiations with Yahoo, which Ballmer agreed to do, provided that Yahoo completely overhaul its board of directors. Though these backdoor conversations have people paying attention to Icahn again, it’s very unlikely Microsoft is still interested in purchasing Yahoo for its original offer. Why buy the cow, after all? But as Michael Arrington at TechCrunch wrote, ‘Microsoft may now be eager to merge with Yahoo, not in the interest of healthy competition in the search engine biz, but for the thrill of humiliating the board of directors that rebuked them in the first place.’ Talk about a jealous ex.
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