The InformationWeek -- Blogs
Over The Air

Topics:   Mobile

  • Email this page E-mail this page
  • Print this page Print this page
  • Bookmark and Share
  • icon

Yahoo To Answer Microsoft Today? Google Waits With Bated Breath


Posted by Eric Zeman, Feb 8, 2008 01:58 PM

TechCrunch is citing sources that say Yahoo is prepared to answer Microsoft's takeover bid as early as today. It seems the board of directors at Yahoo were setting up a meeting for today. That meeting could decide the future and the shape of the Internet for years to come. What will Yahoo do, and what will Google's response be?

According to sources, Yahoo is deciding between just two options. Accept the offer in principal, but get Microsoft to fork over some more coin, or attempt to partner with Google and outsource advertising to the Internet giant.

TechCrunch Reports:

The board, we’ve heard, is basically being told by outside advisors to take the Microsoft deal. But we’ve also heard that a contingent of senior executives at Yahoo, who are willing to do literally anything to thwart a Microsoft takeover, are pushing for the Google deal and will present their case at the meeting.

Based on our discussions with insiders and analysts this week, it's fairly clear that the Google deal would, to say the least, not be a good choice for Yahoo in the long run. But Citigroup's Mark Mahaney gives it a 25% chance of happening anyway, based largely on an emotional response from Yahoo to remain independent at all costs.

Wow. Will Yahoo really jump into bed with one adversary to fend off another? It would be a major win for Google, finally putting to bed the annoyance that is Yahoo. Yahoo has been nipping at Google's heels for years now. It would be a solid increase in revenue for Yahoo in the short term, and Google could swell its advertising business. The long-term consequences, however, aren't clear.

Microsoft, on the other hand, has everything to lose at this point. If Yahoo turns it down, I would expect an immediate increase of its initial offer, with other enticements thrown in to appease stockholders. Microsoft needs an effective platform to expand its Internet-based services. Buying Yahoo can help it do that. This acquisition is the only way it can compete with Google. If it misses the opportunity, no clear path lies ahead for Redmond.

If Yahoo goes for it, I would expect Google to fight the deal tooth and nail.

« The Power Plant In Your Pants | Main | Reports: Apple Sets Date For Launching iPhone SDK, Third-Party Apps »



Sign Up Now
For InformationWeek News Alerts




This is a public forum. United Business Media and its affiliates are not responsible for and do not control what is posted herein. United Business Media makes no warranties or guarantees concerning any advice dispensed by its staff members or readers.

Community standards in this comment area do not permit hate language, excessive profanity, or other patently offensive language. Please be aware that all information posted to this comment area becomes the property of United Business Media LLC and may be edited and republished in print or electronic format as outlined in United Business Media's Terms of Service.

Important Note: This comment area is NOT intended for commercial messages or solicitations of business.




 
Mobile Video


Sign Up For The Over The Air Newsletter
Every Friday, our experts and analysts explore the business, strategy, and management issues most important to mobile and wireless technology.

Sign up for our free, weekly newsletter today!

Newsletter Archives



  1. Actors, Messages and Low Lock Contention for Java
  2. Of Course The Transformers are Multicore with SMT technology
  3. Find John Fast!!


Join The InformationWeek Group On LinkedIn


                           


  1. Why I'm Dropping Bing For Google
  2. 3G iPhone Burns User
  3. 64-Bit Firefox: What's Your Hurry?
  4. So Long, And Thanks, Google Earth, For All The Fish
  5. Windows 7 Pricing: How Much Lower?


  1. Review: Apple's Speedy iPhone 3GS
  2. Tech Innovation USA: From Resilient Networks To Self-Scheduling Devices
  3. How Government's Driving Cloud Computing Ahead
  4. Government As Early Adopter
  5. InformationWeek Analytics: Data Loss Prevention
  6. Strategic Security: Web Single Sign-On

 

  Ars Technica
Boing Boing
Channel 9 Forums
CRN Blogs
Dr.Dobb's Portal: Blogs
Engadget
Gizmodo
GrokLaw
  Lifehacker
Schneier on Security
Slashdot
TechCrunch
Techdirt
Techmeme
Valleywag

  DECEMBER 2008
NOVEMBER 2008
OCTOBER 2008
SEPTEMBER 2008
AUGUST 2008
JULY 2008
JUNE 2008
MAY 2008
  APRIL 2008
MARCH 2008
FEBRUARY 2008
JANUARY 2008
DECEMBER 2007
NOVEMBER 2007
OCTOBER 2007
SEPTEMBER 2007