Dancing on the Grave of the Yahoo – Google Deal!

The Yahoo – Google advertising deal would have been horrendous for consumers, advertisers, Yahoo, partners . . . pretty much for everyone but Google.

Yesterday, that deal was pronounced dead.

<sings> “Ding, Dong the witch is dead.”</sing>

w00t! and all that jazz.

As much of a free market guy as I am, the one place where the free market needs government intervention is in the area of Anti-Trust and Monopoly oversight. The DoJ did right on this one.

Google is becoming increasingly arrogant with their partners and advertisers. On their syndication deals, from what I hear they want to “renegotiate” every deal down to a 50% or lower payout (when in many cases these partners have 85%+). While Yahoo isn’t the best answer for “competition” in the marketplace, at least they’re something.

Google knows they are in effect the only game in town and are behaving more and more like it. Aaron Wall discussed this further in “How Long Until People View Google Like Microsoft?”

I know at least one person who already does.

Speaking of Microsoft, Yahoo shares are up significantly after the death of the Google deal on speculation that this puts Yahoo back in play for a Microsoft bid. Jerry Yang all but begged Microsoft to buy them following the collapse of the Google deal.

The mid $40 numbers that Jerry et al were dreaming of earlier this year are more of a pipe dream than ever. Even the odds of Microsoft bidding $31 per share again are slim to none.

But a $23 price tag would probably work for everyone. Whether or not that’s gonna happen is why the stock is still trading a shade under $15 today. Microsoft said they’ve “moved on” and they may well have meant it.

The question is: If MSFT has moved on, what the hell have they moved on to?

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One Response to “Dancing on the Grave of the Yahoo – Google Deal!”

  1. karthikeyan says:

    If they go to MSFT again, then they will surly reduce the share cost. yahoo ruin itself. Do they like to stand as a weak competitor and get killed by MSFT & GOOG?