Even though Yahoo is in the middle of a hostile takeover by Microsoft, its staff is focused on its daily operations. It was recently announced they will no longer keep its online music subscription service and switch its customers to Rhapsody music service as part of a new deal with Seattle’s RealNetworks that calls for Yahoo to promote Rhapsody on its site.
The Internet pioneer also announced today it had acquired Israel-based FoxyTunes, a Firefox browser plug-in that offers—-among other features—online searches for music, lyrics and other content tied to media playing on a computer. According to several sources the acquisition has been completed for an undisclosed amount of money.
Prior to Microsoft’s unsolicited offer, Yahoo was intending to open an R&D center in Israel: FoxyTunes would probably become the initial operation. It is unclear however for now what would happen in the case of an acquisition by Microsoft.
FoxyTunes was created by 2 brothers, Alex and Vitaly Sirota and raised seed money with Yossi Vardi a few years ago.
It’s rumored that Yahoo is currently studying the possibility of outsourcing its Internet search service to Google which would boost its cash flow by approximately 25 percent.
Yep, Yahoo is adopting a “business as usual” attitude in an effort to avoid being distracted by Microsoft’s hostile bid. Microsoft is a tough contender and will keep on pressuring Yahoo for a deal. Steve Ballmer, Microsoft’s CEO, recently said he will not take “No” for an answer.