Google gets business from Yahoo and heat from Microsoft

Google gets business from Yahoo and heat from Microsoft

Summary: Yahoo today announced that they are testing out the use of Google's ad network replacing their own ad serving system. There is no reason they would be doing this other than to throw a wrench into Microsoft's plans for a hostile takeover of Yahoo.

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Yahoo today announced that they are testing out the use of Google's ad network replacing their own ad serving system. There is no reason they would be doing this other than to throw a wrench into Microsoft's plans for a hostile takeover of Yahoo. Google is happy because they will potentially get a lot more ad inventory, and also because Microsoft is gumbling about it.

In response to this latest announcement, Microsoft released a statement of their own stating that they will assess their options -- supposedly for putting a stop to any form of partnership between the two companies.

Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.

In addition to Yahoo's proposed use of Google AdSense, they are also closing in on a deal with AOL to combine internet operations. It's clear that Yahoo doesn't want any part of a Microsoft acquisition, and will do almost anything to stop it from happening.

Topics: Microsoft, Google, Social Enterprise

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9 comments
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  • This is just too funny

    How is MS wanting to acquire Yahoo any better than Yahoo 'partnering' with Google.

    Seems to me Yahoo will loose its openness once MS gets their mits on them, yes?
    D T Schmitz
    • Not funny ... SMART

      This is a great move in the part of Yahoo. Use the competitor (they aren't Google's enemy) to force the enemy (ie: MS) to either offer full price or leave them alone.

      Either way, they win.
      wackoae
      • Schmart. esactly.

        nt
        D T Schmitz
      • Full price?

        Based upon what? Their current stock price?
        BFD
    • Sad part is if MS decides to give up on them.

      They are doing what many companies in the past have done in this situation and it's almost always a disaster in the end for the shareholders and the employees. Yang is shooting himself, his shareholders and his employees in the foot here, if not even up higher. <br><br>
      Oh well, i feel sorry for yahoo in some odd way. They may not want the media created "monster" Microsoft as parent company, but to go as far as commit suicide is ridiculous. They are probably buying Googles "sincerity" as well. sad.
      xuniL_z
  • Nothing new here

    This was an ancient strategy when Nixon went to China.






    :)
    none none
  • RE: Google gets business from Yahoo and heat from Microsoft

    This is Scott Cleland, President of Precursor LLC, and I testified before the Senate Judiciary committee on the Google-Dooublclick deal.
    I am flagging a blog post I did on this last night.
    I quote the FTC's approval of Google-Doubleclick document which strongly suggests that the FTC has concluded search is a separate market for antitrust purposes. Google's ~60% search share with Yahoo's ~20% search share, make a Google-Yahoo search outsourcing deal a non-starter.
    This is a bad bluff by Yahoo that most investors will see through like glass.
    http://www.precursorblog.com/node/708
    scleland@...
  • RE: Google gets business from Yahoo and heat from Microsoft

    <b>"<i>Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google???s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options.</i>"<b><br><br>Microsoft whining about another business(s) having over 90% market share where they are the minority? Are they freakin' serious? ROTFL
    devlin_X
    • Well...

      Welcome to where Microsoft will be (again) if they do take over Yahoo; having a majority/monopoly share of the webmail and IM markets. Cry havoc and let loose the anti-trust regulators/lawyers once more!
      zkiwi