Microsoft still wants to purchase Yahoo!, however, now their true intentions are becoming more visible:
There’s yet another chapter in what’s beginning to look like an eternal corporate love triangle: Seems Microsoft just can’t get past it’s obsession with Yahoo’s search business, at least according to The Wall Street Journal.
It reports Microsoft is looking to team up with News Corp. or Time Warner to buy Yahoo. They would then bust up the company with Microsoft keeping the search business.
The idea that Microsoft might team up with News Corp or Time Warner, regardless of the new relationship with online ad revenue sharing with Google, to buy Yahoo! might help with Carl Ichan’s quest to sell Yahoo!
The other new order of business is that the Google Yahoo! agreement might be up for review, not by the SEC, but by the Justice Department:
Google’s proposed deal with Yahoo is being looked at by the Justice Department because of antitrust issues and many Yahoo shareholders would like to see Microsoft move in.
From Information Week:
When the deal was announced, Google and Yahoo said they had agreed to delay it for three months to allow the Justice Department time to review the arrangement. It may be that the investigation is nothing more than the government’s acceptance of that invitation. Indeed, that’s how Google sees it.
In an e-mailed statement, Google said, “We are continuing to have cooperative discussions with the Department of Justice about this arrangement and voluntarily delayed implementation for three and a half months in order to give them time to understand the agreement. That process is continuing exactly as expected. We are confident that the arrangement is beneficial to competition, but we are not going to discuss the details of the process.”
But according to the Post, the formal investigation undertaken by the Justice Department represents more significant scrutiny than the sort of pro forma review that the two companies appear to have anticipated.
Whatever the case, Google has already weathered a similar antitrust review as a consequence of its decision to acquire DoubleClick.
What are your thoughts?
Will, or should the Google-Yahoo! deal go through?
Will, or should Microsoft keep up efforts to purchase Yahoo!?
Does it even matter anymore?
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{ 6 comments… read them below or add one }
Adobe Photoshop Tutorials 07.03.08 at 9:26 pm
impossible for them to buy yahoo, and yahoo dont gonna sell their site
Web Design Agency Bristol 07.04.08 at 3:48 am
Alot can happen in a day in the world of internet development! Microsoft buy powerset… and no longer look to buy Yahoo?
It seems they are now intent to go it alone with the help of the semantic search enginge powerset.. is this what microsoft were really after when pursuing yahoo - their semantic open platform? or was it their many web2.0 assets?
lots of qestions no real answers - all we do know is that microsoft has an upward struggle on their hands to compete for advertisers money..next up the mobile cloud computing battle - google 1 microsoft 0
interesting times!
SEO tips 07.04.08 at 11:13 am
It’s quite possible this will happen. If it does really happen, I am curious if they will be able compete with Google Search Engine more seriously. Live Search combined with Yahoo! Search would definately have enough potential and strength to do so.
Personally, I think there is enough space for Yahoo! Search to grow. They just need a smart leadership and maybe more money (MS got huge resources to invest for sure, on the other hand, I’m not sure about the smart leadership part).
Taking into consideration the fact that Microsoft tends to s***w up almost everything that gets in its hands, it could very well happen that Google’s dominant position would just get stronger.
Either way, there are some exciting events going to take place in search engine industry in next few years.
Richard
pittfall 07.04.08 at 12:42 pm
@Adobe Photoshop Tutorials: thanks for the comment.
I don’t think that the senior management has much control over this matter, we will have to see if it will.
pittfall 07.04.08 at 12:45 pm
@Web Design Agency Bristol: Thanks for the comment!
I think that Microsoft is looking for the traffic that a purchase would bring, or possibly the ad revenue that a larger amount of traffic would bring, it certainly isn’t the advertising platform…
pittfall 07.04.08 at 1:21 pm
@SEO tips: Thanks for the comment.
I don’t think that Yahoo! Search can’t get out of the hole they are in, the only question is if the shareholders are willing to wait. Based upon the reactions from Icahn’s recent moves, I don’t think they will. Microsoft, I think, has some concerns with their long-term profitability, hence the purpose for the acquisition. In my opinion, they don’t have the time to get it right themselves…
It has been quite a ride so far, and I don’t think this roller coaster ride is over (and Yahoo! has had little control of the speed either!).