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Yahoo management considering deal with Google to avoid MS buyout - or maybe not

4 February 2008 1:21 by Rich "vurbal" Fiscus | 10 comments

If you're concerned about the possible effects of a Microsoft buyout of one-time internet search leader Yahoo, you're not alone. In fact, it seems that Yahoo executives may feel the same way - kind of.

Unnamed sources at Yahoo have indicated that company management is considering re-opening talks they had just a few months ago with current search frontrunner Google. The talks were intended to forge a partnership of some sort between the two companies, which some in management are apparently considering again in order to fend off Microsoft's advances. With monopoly considerations making them nothing more than a spectator in the entire affair, it seems like obvious that Google would jump at the chance to put a halt to Microsoft's plan to expand right into their backyard.

The same unnamed sources aren't going so far as to suggest that a Yahoo-Google partnership is likely, or that others may not be interested in buying Yahoo (although no obvious companies come to mind). In fact it's possible that they're just hoping to force Microsoft to raise their bid because they feel the initial offer is too low. Meanhwhile, some in the investment world have suggested that Microsoft's offer isn't likely to be their final one, but rather that it's just high enough for Yahoo shareholders to get excited, forcing mangement to give their own appraisal of the company's worth.

One analyst at Sanford C. Bernstein wrote in a research note that "the Microsoft bid of $31 is very astute" because it puts pressure on Yahoo management to take actions that could expose the actual value of the company's assets, which he believes are likely worth better than $39 to $45 a share.

And of course Google and Microsoft representatives have been exchanging jabs at each other through the press. While Microsoft plays up the importance of consolidating MSN and Yahoo's search services to increase competition with Google, sources from that company point out that Microsoft's proposed buyout would join the top two email and IM services.

If nothing else this underscores why we here at Afterdawn have decided to devote ourselves to video and related topics rather than wasting time with business predictions.

Permalink to this article

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Discuss this article!
spydah (Junior Member) 4 February 2008 10:23
I hope Google does this because as most people know M$ will find a way to screw up a good thing like Yahoo just to forcefully push there under quality products in every home. [ + quote]
atomicxl (Newbie) 4 February 2008 16:08
I'm pretty sure there will be MASS layoffs if Google buys them. Two companies that do EXACTLY the same thing in the same market. How much role sharing are they gonna have? [ + quote]
falcon07 (Newbie) 4 February 2008 16:25
Even if you don't use or like Yahoo you would wish Microsuck has nothing to do with them. Just think what you would have to look forward too. Freezing, re-booting, updates, patches, viruses, and just bad software. Microsuck will not leave Yahoo at the level it is at now it will bring it down to the level they are now. The world could use less of MS. Falcon07 [ + quote]
atomicxl (Newbie) 4 February 2008 23:42
*Originally posted by falcon07:* Even if you don't use or like Yahoo you would wish Microsuck has nothing to do with them. Just think what you would have to look forward too. Freezing, re-booting, updates, patches, viruses, and just bad software. Microsuck will not leave Yahoo at the level it is at now it will bring it down to the level they are now. The world could use less of MS. Falcon07 You still on Windows 95? I leave my PC on for days at a time. No crashing, freezing. I think people with those issues are the one who browse the web and say, "Hell yeah i'll take 2 free ipods!!! I don't care what they ask me to click or download... Plus I have the two xbox 360s on the way!!" [ + quote]
WierdName (Senior Member) 5 February 2008 3:36
*Quote:* *Originally posted by falcon07:* Even if you don't use or like Yahoo you would wish Microsuck has nothing to do with them. Just think what you would have to look forward too. Freezing, re-booting, updates, patches, viruses, and just bad software. Microsuck will not leave Yahoo at the level it is at now it will bring it down to the level they are now. The world could use less of MS. Falcon07 You still on Windows 95? I leave my PC on for days at a time. No crashing, freezing. I think people with those issues are the one who browse the web and say, "Hell yeah i'll take 2 free ipods!!! I don't care what they ask me to click or download... Plus I have the two xbox 360s on the way!!" LOL. Ya, even though it's made by microsoft, pretty much the only way XP will get bleeped up beyond repair is from human negligence. If you use good virus scanners, firewalls, etc, you won't run into many problems. Also, not being completely ignorant and clicking on every viral link offering free stuff helps... The last update I put on my XP media center was SP2 and have actually been running this current installation for a year (I usually reinstall every six months just to refresh everything). [ + quote]
antilazy (Newbie) 5 February 2008 14:46
In spite of a few draws,we should give MS its proper position. Without MS, the world would not be like now. [ + quote]
Hardwyre (Newbie) 5 February 2008 16:36
I'm sorry, I'm still voting for Microsoft on this one. Google has been great in the past, telling the U.S. Gov to kick rocks when they wanted to gather info on the people who use the search engine (Yahoo!, AOL, Dogpile, and ask.com all caved) but they have kicked Microsoft in the teeth by stealing all their software devs. Microsoft has been bending over backward trying to stray from their "Big, bad corporation" rep, and personally, I think it has been working. Anyone else who has been following the recent dealings of Microsoft with any accuracy should be leaning toward the same conclusion. Google doesn't need the help, and is only interested in taking the Yahoo! properties to merge with their own. I think that if Microsoft gets Yahoo!, it would mean some major competition for Google, and competition is the lifeblood of progress. When companies compete, it's the end-user that wins. Yahoo! needs to die, though. Their toolbar opens up vulnerabilities to malicious attacks, and their business practices are all but criminal. [ + quote]
bigbla12 (Newbie) 9 February 2008 1:42
I don't trust microsoft in any of these business dealings. look at the vista os. it's microsofts planning ahead to put major control on the internet. freeware is extrememly limited on that system. this gives microsoft the opportunity to later make what was a simple inexpensive online experience an expensive one. the company owns a successful gamings division, wants to have even more control on the web, wants to dominate the Mp3 arena (zune), make profits in the car interactivity department (sync), and i can't think of what else. its like slow but sure absolute power. and to me absolute power corrupts absolutely. a few years back microsoft was forced to split into two companies because it was producing a monopoly. seems like the same monopoly has returned. i hope microsoft doesn't gain the control of yahoo. all these steps just sucks for us users. you won't see it all clearly now but down the road, definitely. [ + quote]
bigbla12 (Newbie) 9 February 2008 1:45
*Originally posted by bigbla12:* I don't trust microsoft in any of these business dealings. look at the vista os. it's microsofts planning ahead to put major control on the internet. freeware is extrememly limited on that system. this gives microsoft the opportunity to later make what was a simple inexpensive online experience an expensive one. the company owns a successful gamings division, wants to have even more control on the web, wants to dominate the Mp3 arena (zune), make profits in the car interactivity department (sync), and i can't think of what else. its like slow but sure absolute power. and to me absolute power corrupts absolutely. a few years back microsoft was forced to split into two companies because it was producing a monopoly. seems like the same monopoly has returned. i hope microsoft doesn't gain the control of yahoo. all these steps just sucks for us users. you won't see it all clearly now but down the road, definitely. there isn't that much competition out there on the same level as microsoft and google. and obviously microsoft has the upper hand, in circumstance and in profits. we all use there os and mainly, usually, and sometimes only through it do we access Google [ + quote]
borhan9 (AfterDawn Addict) 27 February 2008 23:43
Smart move by Yahoo i would say to go with google would be better due to the fact that if they go with Microsoft then they maybe full of drm results :P [ + quote]