Google pokes Microsoft in the eye and offers Yahoo a helping hand

Google's official statement on the hostile Microsoft/Yahoo! acquisition attempt is an angry one -- Google is upset that Microsoft is doing this, and they are positioning it as a "monopolist at work" type of deal.

The obvious result of a tie-up would mean a stronger competitor for Google on the search and ads front, but something I never thought about was the combination of MSN/Yahoo! Instant Messenger and Hotmail/Yahoo! Mail. The thought of these services together could be enough to delay the deal.

David Drummond, Chief Legal Officer at Google, calls for regulators to take a careful look at the acquisition -- but, in my opinion, there isn't much chance of them blocking the deal as it stands. Many people are thinking that this is simply Google's way to get back at Microsoft for slowing down their own DoubleClick acquisition, but could it be a carefully thought out tactic?

This long drawn out process gives Yahoo! plenty of time to thwart Microsoft's hostile bid -- and it could not be more poetic than a deal with Google. Eric Schmidt called up Jerry Yang (CEO of Yahoo!) to offer him a deal. There are no details on what was discussed, but some think that Google may entice other companies to submit competing bids by offering guaranteed revenue if Yahoo! agrees to use Google's ads on Yahoo! Search.

Whatever happens, this is quickly becoming a very interesting story that I'm sure will have many twists and turns in the weeks and months ahead.