November 6th, 2008
Yahoo looking for a rebound after break-up
Google officially called it quits on the search ads deal between themselves and Yahoo. This is one of those cases where Google decided it was in their best interest to not proceed with something, even though they truly believe it would be a great thing. This shows me that Google has the ability to detach themselves from ideas — something that will surely save them a lot of time, money and headaches.
Even though this deal, according to Google, would have been great for everyone involved, they decided to break up with Yahoo on their Official blog — and shortly after that, Yahoo went looking for a rebound.
In a statement from Jerry Yang, Yahoo’s CEO, the company recommends that Microsoft should do exactly what they tried to prevent — buy Yahoo!
“To this day the best thing for Microsoft to do is buy Yahoo,” said Mr Yang.
“I don’t think that is a bad idea at all, at the right price whatever that price is. We’re willing to sell the company,”
Sounds like a good deal for Microsoft, right? Well, actually that deal could end up being a bit of an antitrust nightmare itself. Yahoo and Google’s partnership was in too much danger of being ruled as anti-competitive in the online advertisement space, but a Yahoo-Microsoft deal might be anti-competitive for another reason.
Microsoft and Yahoo together may be considered anti-competitive on grounds that Yahoo Messenger + MSN Messneger will be the lone giant in the instant messenger space — controlling close to 80% of the IM market share. Even Hotmail + Yahoo Mail together far outweighs any other webmail service with over 500 million users. I guarantee Google won’t let a deal like this happen quietly.
Garett Rogers is employed as a programmer for iQmetrix, which specializes in retail management software for the wireless industry.
See his full profile and disclosure of his industry affiliations.
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