Yahoo-Google May Team Up to Thwart Microsoft

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Reuters reports that Yahoo is considering outsourcing search monetization to Google as a way of keeping Microsoft at bay. 

This move would likely instantly drive at least several hundred million dollars of incremental revenue and operating profit for Yahoo. It would not likely cause Microsoft to give up its pursuit of the company, but it might result in a higher bid. It also might reduce shareholder pressure on Jerry and the Yahoo board.

The WSJ says Eric Schmidt called Jerry Yang on Friday to offer help.  "Help," according to the Journal's sources, could include the search deal or "a role in attempts by others to outbid Microsoft, or by Yahoo to remain independent."  The NYT says Google also placed calls to Time Warner to offer help if Time Warner wanted to make a counter bid (highly unlikely, in our opinion).

Not that Jerry doesn't need all the help he can get, but Google's anti-Microsoft obsession borders on Ahabian.

See Also:
Why the Yahoo-Microsoft Deal Will Be a Disaster
Dear Jerry and Steve...Here's the Answer
Yahoo in Play: Your Handy Guide to the Deal of the Decade


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5 Comments


Selling Yahoo's Soul to the Evil Ones Who Do No Evil? said:
Yahoo once again ups the the cost of buying Yahoo in ways that end up costing the Yahoo shareholders money. With leadership like this, no wonder Yahoo is tanking.

At this point, if the deal falls through, Yahoo will be seen as as good as dead.

The price of pride.





Jim said:
why is it you feel free to make conclusions like

"Not that Jerry doesn't need all the help he can get, but Google's anti-Microsoft obsession borders on Ahabian."

Indicating, i guess, you think Google is paranoid, or over reacting to Microsoft, while on the very same day you are including the following in a related article:

"Steve will want to kill himself before he admits that he won't eventually be able to crush Google through money, power, energy, and relentless effort. "

So, please tell me, which is the obsessed, paranoid, over acting company. I'd say Microsoft, based just on your words.

fwiw

Jesse said:
A partnership between Google and Yahoo would make sense. Google use to supply search to Yahoo in the past when Yahoo depended more on its portal business.

XOM said:
Exxon could almost outbid MSFT in cash with just last years profits. Seriously, what's the long term plan for Big Oil with the Dems about to take over? Or maybe they're the ones bidding on the wireless spectrum :-)

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