Yahoo Shares Up on Hope of Talks - Google's Victory (
Page 2 of 2 )
GOOGLE'S VICTORY
Microsoft courted Yahoo to capitalize on the rapidly growing market
for Internet advertising, one that has long been served by Yahoo's
search, e-mail and Web communities.
It is also trying to fend off the expansion of Google, which has
made inroads into Microsoft's home turf with a portfolio of Web
based-applications, e-mail and messaging.
But now that a deal has fallen apart, Google has emerged as the key
beneficiary. Not only has the creation of a larger competitor been
averted, Google may also reach a partnership with Yahoo to deliver some
of its paid search listings.
Google and Yahoo are hammering out the intricacies of a potential
deal and also are sharing their plans with antitrust regulators, a
person close to Google, who was not authorized to speak publicly on the
matter, said.
A Google deal would boost Yahoo's operating performance in the near
term, but runs the risk of regulatory scrutiny over an alliance between
the Internet's top two players.
In a letter to Yang over the weekend, Ballmer warned that any deal
between Yahoo and Google would be difficult to unravel and would
preclude an agreement with Microsoft.
Yang told Reuters the company would take care to structure any new
efforts to "preserve as much (as possible) long-term flexibility for
Yahoo, both operationally and strategically."
(Additional reporting by Tiffany Wu and Kenneth Li in New York,
Muralikumar Anantharaman in Boston, Anupreeta Das in San Francisco and
Peter Henderson in Los Angeles; Editing by Brian Moss and Rory Channing)
© Thomson Reuters 2008 All rights reserved
GOOGLE'S VICTORY
Microsoft courted Yahoo to capitalize on the rapidly growing market
for Internet advertising, one that has long been served by Yahoo's
search, e-mail and Web communities.
It is also trying to fend off the expansion of Google, which has
made inroads into Microsoft's home turf with a portfolio of Web
based-applications, e-mail and messaging.
But now that a deal has fallen apart, Google has emerged as the key
beneficiary. Not only has the creation of a larger competitor been
averted, Google may also reach a partnership with Yahoo to deliver some
of its paid search listings.
Google and Yahoo are hammering out the intricacies of a potential
deal and also are sharing their plans with antitrust regulators, a
person close to Google, who was not authorized to speak publicly on the
matter, said.
A Google deal would boost Yahoo's operating performance in the near
term, but runs the risk of regulatory scrutiny over an alliance between
the Internet's top two players.
In a letter to Yang over the weekend, Ballmer warned that any deal
between Yahoo and Google would be difficult to unravel and would
preclude an agreement with Microsoft.
Yang told Reuters the company would take care to structure any new
efforts to "preserve as much (as possible) long-term flexibility for
Yahoo, both operationally and strategically."
(Additional reporting by Tiffany Wu and Kenneth Li in New York,
Muralikumar Anantharaman in Boston, Anupreeta Das in San Francisco and
Peter Henderson in Los Angeles; Editing by Brian Moss and Rory Channing)
© Thomson Reuters 2008 All rights reserved
