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![]() Status: ***** Elder Join Date: Mar 2008 Location: News Office
Posts: 1,884 Tournaments Joined: 0 Tournament Wins: 0 Spent time on board: 0:05:24 Hours Rep Power: 4 ![]() | Microsoft and Yahoo were pushed to the brink of a multibillion-dollar marriage and then to a sudden breakup this past weekend by the same player. It was Google, in the odd dual role as both unwitting matchmaker and self-interested spoiler. Google's phenomenal rise, after all, prodded Microsoft, the dominant technology company for more than two decades, to court Yahoo. And Google's success also weakened Yahoo enough to give Microsoft the sense that it could buy the company at a good price. A combined Microsoft-Yahoo would create a powerful competitor, and Google early on indicated that it would fight the merger on antitrust grounds in Washington and Brussels. But Google played a part in killing the deal, for now at least, by acting more as friend than foe. It offered to let Yahoo use its more sophisticated search advertising technology, which by some estimates would have meant $1 billion more revenue a year for Yahoo. The partnership would also bring Google more revenue. The prospect of such a partnership emboldened Yahoo's board to demand more money for the company and eventually caused Microsoft to rethink its strategy. Steven Ballmer, Microsoft's chief executive, cited the proposed Google partnership as the main reason for not pursuing a hostile bid and instead walking away Saturday. "Such an arrangement with the dominant search provider would make an acquisition of Yahoo undesirable to us," he wrote Jerry Yang, Yahoo's chief executive, in a letter, and cited five specific reasons Google would be bad for Yahoo. Yahoo may well pursue the partnerships with Google, its main rival, to bolster its depressed stock price. Yahoo shares dropped 15 percent Monday, to close at $24.37. The two companies refused to comment. Not surprisingly, analysts are saying the Microsoft-Yahoo saga has one clear winner: Google. And its stock price reflected that thinking Monday. More than $4 billion was added... More... |
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