Microsoft is trying to get into the online advertising game but can they hope to compete without aquiring Yahoo and its volume? Shoemoney's Jeremy Schoemaker believes Microsoft will make a move at Yahoo and its going to happen in 2007.

Among others, he cites the following reasons:

Microsoft’s horrid search algo is by far the single biggest problem that Microsoft has right now. The problem is that when there is no users using the search engine then there is a ton of ads that never are shown. If Microsoft were to acquire Yahoos search algorithm this would be a GIANT step in getting users back.

Overture Yahoo Search Marketing. Microsoft used to broker every through the company formally known as overture. for showing ads on search. They are now trying there own company but its chugging along at a very slow pace. Most advertisers like Microsofts Adcenter but agree there is just not enough volume from its search engine.

Microsoft has tons of stale old people who do not understand this new industry. Microsoft realizes that they are not only loosing ground in the search industry fast but they also lost market share in server technology to zend (PHP) and other opensource products.

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