Yahoo and Microsoft are again in talks and very near to finalizing the deal reports All things D. What does a potential deal between MSFT and YHOO mean for search engine ecosystem and Google? Nothing much at this time. However, the deal can pose a long term threat to Google.

Microsoft is already enjoying early success with bing. Addition of Yahoo’s search technology and team will give them access to services like Search Monkey, BOSS apart from the core Y! technology. A couple more strategic accquisitons (say Twitter) after that or partnering with Facebook (MSFT is an investor) will give them access to real-time data as well.

It’s not that Google will lose all its market share to Microsoft overnight, but they’ll need to be on their toes all the time and keep INNOVATING.