The Yahoo! Rumor That Just Won’t Go Away…

So Michael Arrington got put on the spot on Fox Business News and the age old Microsoft/Yahoo! merger rumor resurfaced. It’s almost as frequent as a Rick Roll YouTube video link.

I’ve written before about how this Microsoft rumor, which dates back to the days of Terry Semel, seems less likely to me than other alternatives such as ATT. Not that it’s even a likely event with the right management moves.

So Dave, why do you think this? Well, it’s commonplace for companies to have long standing alliances before merging. Yesterday, Yahoo! sent out this little noticed press release which stated the following.

AT&T Inc. (NYSE:T), the nation’s No. 1 wireless and broadband provider, and Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, today announced a new multi-year strategic alliance that paves the way for an even richer and more innovative online experience for consumers – whether at home or on the go.

This doesn’t mean a Microsoft merger is impossible, I just can’t see a scenario where AT&T isn’t given a chance to match it or initiate it based on 7 years of partnership history.

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