Yahoo Merged With Google, Turned Down Microsoft
Yes, dear readers of this site called a weblog, you read it right – (YAHOO + GOOGLE) = (YAHOO – MICROSOFT). You got the math? If not, then sorry. I’m sorry because the dream team of many bloggers (YAHOO + MICROSOFT) will not happen anymore. The matrimony between the two search engine moguls has been sealed with a kiss, leaving Microsoft network in the background watching the events as they unfold.
News has it that Yahoo Inc and Microsoft Corp ended talks as the Web pioneer agreed to let archrival Google Inc sell search ads on its site, the companies said on Thursday.
In addition, separate statements from Microsoft and Yahoo signaled a more permanent rift between the two after months of on-again, off-again talks. It also heightened pressure on Yahoo to outline an alternative strategy. Yahoo shares fell 10 percent.
Yahoo said it had agreed to let Google put search ads on its site in what it called an $800 million annual revenue opportunity that would boost cash flow by $250 million to $450 million in the first 12 months.
Yahoo’s ads and Google’s would be pitted against each other in an auction style process that could make a deal easier to pass regulatory approval.
“Yahoo is being a reseller of Google whenever it makes sense and that is likely to be a lot of the time given how much more effective Google Web search ads have proven to be,” Global Crown Capital analyst Martin Pyykkonen said.
The deal is expected to face a major antitrust review given the rising power of Google, and Sen. Herb Kohl, a Wisconsin Democrat and chairman of a US Senate antitrust subcommittee, said he would investigate the deal.
Microsoft had sought a tie-up with Yahoo for more than a year and by early May had offered up to $47.5 billion, or $33 per share, to buy the Internet company.
Its latest offer included buying Yahoo’s search business and paying $35 per share for a 16 percent stake in Yahoo, said two people briefed on the matter but not authorized to speak publicly about it.
After talks fell through, Yahoo shares fell to $23.52 on Nasdaq. Following details of the Google deal, they rose to $24.00 in after-hours trade.
Microsoft had hoped a Yahoo deal would accelerate its ability to capitalize on Web advertising growth and compete with Google, which is increasingly fighting for the same Internet audience.
Yahoo said on Thursday that Microsoft had made it clear in a meeting on June 8 that it was no longer interested in buying the company outright, even at the price of $33 per share Microsoft had most recently proposed.
That may not appease Yahoo shareholders, including billionaire Carl Icahn, who have been pressuring Yahoo to reach a deal with Microsoft. Icahn has called for Chief Executive Jerry Yang to be ousted.
Microsoft said it was not interested in “rebidding” for all of Yahoo, sending its shares up more than 4 percent as investors showed relief that the company would not be paying too high a price for a deal they considered risky.
On Thursday, Yahoo said that an alternative Microsoft proposal to buy only its search business did not fit into Yahoo’s plan to grow search and display advertising.
Microsoft said in a statement that its alternative offer was still open for discussion. It said that its most recent discussion with Yahoo for a partial deal would have valued Yahoo at more than $33 per share.
Many bloggers (like this one) were hoping that Yahoo will merge with MSN because of some issues with the Big G about ranking of websites and web pages. Sorry folks, now that the Big G has a big hold on the Big Y! we can kiss our big hopes goodbye.
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Naku kuya, grabe na ito. Power house in full effect! Nakakakaba. Parang naririnig ko na yung sound effects sa mga suspense/horror films sa background …
Jen’s last blog post..Friday’s Feast
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jessie reply on June 14th, 2008:
Jen,
The drums are actually rolling up to now. lol!
jessie’s last blog post..How Many Blogs Can You Maintain?
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World peace for the two giants! Does this mean that we’re going to have PR from those two sites? Or the indexing of sites will be merged, thus a higher PR? It’s something to look forward to in the coming months and see how they work together in terms of ranking.
Marlene’s last blog post..I Feel Sorry For Him
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jessie reply on June 14th, 2008:
Mhy,
It could mean that when we are de-indexed in one search engine, it’s probable that the other SE will do the same. We might also see another algorithm in ranking webpages/websites in the future because of this merging. who knows? they can talk about controlling the net for their own benefit.
jessie’s last blog post..Roxanne Guinoo-Jake Cuenca Breakup
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Now I am wondering what’s next for bloggers like us… hayyy
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jessie reply on June 14th, 2008:
Elaine,
That’s a good question. Maybe those who make money by doing reviews are into a bit of trouble with this. I’m not sure. It’s only a speculation.
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Jen reply on June 14th, 2008:
Yaiks!!!! I should get ready for a major slapping!
Jen’s last blog post..Are You Brand Conscious?
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jessie reply on June 14th, 2008:
Jen,
Maybe not in the next update. In the near future maybe. Things have got to be ironed out yet between the two. But that is my suspicion. This has got to do with their ranking algorithms which is not far from happeniing.
jessie’s last blog post..Roxanne Guinoo-Jake Cuenca Breakup
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Impact goes to SE Optimizer. This is something that they must monitor.
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