Google CEO Eric Schmidt says a Microsoft-Yahoo merger would "break the Internet." Top ad agency execs don't mind the idea. WPP CEO Sir Martin Sorrell, who calls Google a "frenemy," told the FT "a duopoly is better than a monopoly." Robert Lerwill, CEO of agency giant Aegis, hopes Microsoft CEO Steve Ballmer will win over Yahoo shareholders too. "The deal would probably be beneficial for advertisers, not just in encouraging price competition but also in terms of improvements in technology," he said.
People underestimate the strength of Microsoft and Yahoo. Google has got search sewn up, but in display Yahoo is better than Google, so I think the combination of the two companies could provide a decent counterbalance.(Photo by eirikso)