Yahoo reportedly closer to Google search deal

Yahoo reportedly closer to Google search deal

Summary: As Yahoo awaits Microsoft's decision on whether to launch a proxy war, the company is moving closer to a search deal with Google.Yahoo and Microsoft, which are negotiating through the Wall Street Journal, are trying to outflank each other.

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As Yahoo awaits Microsoft's decision on whether to launch a proxy war, the company is moving closer to a search deal with Google.

Yahoo and Microsoft, which are negotiating through the Wall Street Journal, are trying to outflank each other. Microsoft is talking about walking away and Yahoo is using Google for additional leverage and to play defense. The Journal reports:

Yahoo was waiting for Microsoft to announce its approach this week after the two sides failed to reach a negotiated deal, amid a divide on price. But Yahoo has also been pursuing a broad agreement to carry search ads from Google, which it views as a way to boost its cash flow and bolster its claim to shareholders that it's worth more than Microsoft has offered. Such an agreement could still go forward even if Microsoft announced a hostile takeover effort.

While a broad search ad pact would likely attract intense antitrust scrutiny, the options Google and Yahoo are discussing include a nonexclusive arrangement that they believe could satisfy regulators, say the people familiar with the matter.

Where things really get interesting is that this Yahoo-Google tie-up could create a real-time auction system that could allow Microsoft to connect. This system would reportedly ease regulator concerns. Yahoo and Google have been running a test of their partnership. It's no coincidence that Yahoo fed the Journal its progress report on Google on the same day Microsoft CEO Steve Ballmer noted he could walk away from the deal.

Topics: Google, Browser, Microsoft, Social Enterprise

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9 comments
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  • Steve, take your marbles and go home. (nt)

    (nt)
    Basic Logic
  • "auction system that could allow Microsoft to connect"

    That's be great. Especially if they keep changing the protocols further down the road so that MS machines don't work properly.
    fr0thy2
    • changing protocols

      That is really funny! Especially in light of Microsoft insisting that Google is the new Evil Empire adopting monopolistic practices. Whom better to learn from than Microsoft?
      RLBrandt
  • The thing that worries Google most

    is that if MS does go thru with it, they will be partnered with Microsoft!

    Imagine that/
    GuidingLight
    • I'll bet there's a clause in there somewhere to protect Google

      "This contract is invalidated if Partner Y is bought out by megalomaniacs that cannot even write a stable operating system".
      fr0thy2
      • No clause in there

        Google does what they do for money, not morality.

        I would imagine they are secretly welcoming it as bigger parter, bigger profits.
        GuidingLight
        • Yeah I'm sure Google want to climb into bed with Monopolysoft

          not.
          fr0thy2
  • Microsoft walks away, Yahoo stock starts to tank.

    Good for Yahoo stockholders, NOT!!!
    No_Ax_to_Grind
  • SELL that Yahoo stock NOW

    Sure hope my broker can dunp this loser first thing Monday morning. This thing is going to go down like a sub with a hole in it.
    No_Ax_to_Grind