 |
User: Login |
Weblog covering digital business
Digital Business, Live From New York. |
| Address URL | http://www.alleyinsider.com/ Registered: 22-Mar-2008 |
| Ads: | |
 Send to email | Yahoo-Google Search Deal Moving Forward, Yahoo Playing This Brilliantly in MSFTYHOO |  By Silicon
el 17-Apr-2008 |
jerryyang6.png: Paste this image in your site, Myspace, Facebook, Ebay copy this code...
 Another small Yahoo (YHOO) leak in the Journal should start some conversations at Microsoft (MSFT) today: The Yahoo-Google search test has been judged a success, and the companies are now moving toward a full outsourcing deal.
As we've said, we believe the search partnership is a brilliant 11th-hour counter move by Yahoo will force Microsoft to pay more for Yahoo than it otherwise would have:
- First, by allowing Yahoo to boost its cash-flow projections by $500 million or more a year, and,
- Second, by forcing Microsoft to buy Yahoo to break up the partnership. If Google and Yahoo work together and Microsoft doesn't buy Yahoo, Microsoft's own search platform will be rendered almost entirely irrelevant. (It's headed there anyway, which is why Microsoft wants to buy Yahoo).
Upon the announcement of the test, Microsoft quickly argued that a Google-Yahoo search partnership would be illegal. After looking into this, we believe Microsoft would have a credible argument to support this, but we also believe that Yahoo would have a reasonable counter-argument, so we don't think any litigation would be resolved quickly. The WSJ also notes that the two companies are aware of the regulatory hurdle and are designing the terms of the deal to minimize regulatory risk (by eliminating certain regions or categories).
Yahoo is supposed to have a meeting with Microsoft week. Given that we haven't heard about it yet, it's likely happening today or tomorrow. The Google-Yahoo partnership will be an elephant in the room.
See Also:
Is Yahoo-Google Search Deal Illegal? Maybe. Does It Matter? No.
Jerry Strikes Back: Yahoo-Google Search Test Is a Brilliant Counter-Move
Brilliant Yahoo-Google Test Should Lead to Higher Takeout Price
Read 7 times
|
|
 |
|
Warning We are not responsible of information posted from external feeds. Use this website at your own risk.
Notice: We will not be liable for any direct or indirect loss or damage arising under this disclaimer or in connection with our website, whether arising in tort, contract, or otherwise.
|
|
| |
Hello, Guest
Online: 23 visitors
+ fotos
As of last weekend, Yahoo (YHOO) had two deals on the table: A Microsoft (MSFT) search deal and a Google (GOOG) search deal. Yahoo chose the Google deal. After speaking with a person famil [..] 
Google gives Microsoft (MSFT) another thing to think about as it debates its Yahoo options: Google (GOOG) thinks anti-trust regulators will be fine with a Google-Yahoo outsourced search deal. Reut [..] 
Google, in its quest to convince people that its search ad deal with Yahoo is a good thing for the industry -- and not a monopoly over search -- has launched a fact site detailing exactly how the deal will work [..] 
The key rationale for the the Google-Yahoo search deal (debated today on Capitol Hill) is that Yahoo will come out of it with better ad rates for keywords. Search marketing firm Se [..] 
UPDATE: An SAI source confirms that Yahoo and Google have reached a search deal. The source believes that the deal will start small and ratchet up [..] 
