Bill Gates Pursues Greener Pastures in ‘Growth,’ Sergey Brin Gloats

Following the withdrawal of its Yahoo bid, Bill Gates says Microsoft will focus on growing its online ad and search businesses.

The Associated Press reports Gates express confidence about Microsoft’s ability to compete against Google, which, he admits, has a “strong lead” in search and advertising.

Microsoft is now rumored to be pursuing Facebook. And while Gates did not rule out future acquisitions, he did not comment specifically on the Facebook talk.

Microsoft right currently third in the search market. It serves just 9.4 percent of users, compared to Google’s 59.8 percent and Yahoo’s 21.3.

Google’s Sergey Brin was reportedly happy that Google played the role of spoiler in Microsoft’s futile pursuit. For a short while, Google emerged as a Yahoo liaison for search ad sales. Forward movement on that front has allegedly waned since Microsoft’s shadow passed the search site over.

Brin said Google’s relationship with Yahoo remains friendly.

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Microsoft Creeps Up Facebook’s Skirt; Yahoo Suitors Drop Like Flies

A source for the Wall Street Journal claims Microsoft has asked Facebook whether it is interested in selling.

Last year, Microsoft purchased 1.6 percent of Facebook for $240 million.

More at MarketingVox

Inside Microsoft’s War Against Google

With Yahoo off the table, Microsoft plans to challenge Google’s online-ad juggernaut alone. A behind-the-scenes look at its provocative strategy

From BusinessWeek

Google Says It Could Appease Regulators in Yahoo Deal

Google Inc., owner of the most popular Internet search engine, said it could arrange a partnership with rival Yahoo! Inc. in a way that would ease regulators’ antitrust concerns.

Comments by Chief Executive Officer Eric Schmidt hinted at the chance of a broad deal between the Internet companies after Yahoo last month ran some of Google’s ads next to search results in a two-week test. The two are exploring a new agreement, people familiar with the talks said this week. Co-founder Sergey Brin said Google has no new agreement to announce today.

From Bloomberg

Google sees YouTube products soon; warm on Yahoo

Google Inc expects to launch new products for its YouTube Web video service in the next few months and sees reason for closer cooperation with Yahoo Inc., Google Chief Executive Eric Schmidt said on Thursday.

From Reuters

Google May Run Display Advertisements With Image-Search Results

In an effort to spread out its revenue sources, Google is considering running illustrated advertisements alongside the search results for pictures. This moves beyond its text-based ad business.

Matching graphical-display ads with image searches “represents a large opportunity, and there’s lot of potential for advertising revenue there,” Marissa Mayer, a Google vice president, told Bloomberg Radio today. At the same time, the company must ensure such ads don’t drive users away, she said.

From Bloomberg

Google Loses Another Sr. Exec, Contends they “have a deep management pool”

After losing yet another senior executive to Facebook, Google (GOOG) is again trying to stem concerns that all its smart employees have left.

Responding to the departure of Elliot Schrage, who followed Sheryl Sandberg, Ben Ling, Ethan Beard, Gideon Yu, and executive chef Joseph Desimone to the Valley’s next great money machine, Google spokesman Matt Furman said:

“We have a deep management pool at Google.”

Furman also added that Google gets 1,300 resumes every day.

From SAI via BBC via SearchEngineWatch

Microsoft’s Mundie Reopens Yahoo Door

Note to self…”Don’t believe Microsoft when they say ‘we’ve moved on’ from a big deal…”

Microsoft (MSFT) has sent emissaries all over the globe this week to deliver the message that the Yahoo (YHOO) deal is as dead as a doornail, but now one of them, Craig Mundie, has either fallen horribly off message–or the negotiations are basically back on.

From SAI

Sergey Brin Opts Out of Political Shareholder Votes

From SAI:

Sergey Brin is against censorship and human rights violations. Just don’t ask him to vote on it.

At Google’s annual meeting Thursday, the company’s board recommended voting against two shareholder proposals: One that would require Google to work against censorship in countries like China, and another that would require the company to work for human rights in those same countries. But Sergey himself abstained from voting on either of the motions. When asked about his non-vote later during a Q/A session, he said:

“I think directionally the two proposals were correct, but I don’t know if I should believe that it should be a shareholder proposal…. But I think it makes sense to have a separate, a group of independent people in Google who meet regularly to discuss (these issues).”

All reasonable points — we don’t actually expect Google to solve knotty problems like the ones China presents all by itself. But if you don’t think the proposals, as written, made sense, why not vote against them? That seems easier.

That “Microsoft Releases Proxy Slate” Thing? Irrelevant

From SAI

Some folks appear to be under the impression that Microsoft’s freeing of its potential Yahoo (YHOO) director nominees from their Microsoft obligation is a sign that Microsoft (MSFT) really has walked away from Yahoo. Please.

There’s no meaningful news here. Micrososoft is not going to “go hostile”–and neither is anyone else. If a Yahoo deal happens, it will happen because Yahoo approaches Microsoft and agrees to sell for $33-$34. Microsoft made clear in its see-ya letter that it wasn’t going to go hostile. The freeing of the board slate is just a formality.