After killing all hopes of getting a deal done with Microsoft, Yahoo has quickly jumped up to up a non-exclusive deal with Google that would give access to Yahoo to their AdSense for search and AdSense for content advertising.
This means that the search advertising for Yahoo will now be a mix of ads from Google’s AdSense and various other third parties along with its existing Panama system. All this as thought of by Yahoo will bring up to $800 million additional revenues a year with an immediate revenue of $250 – $450 million in the first twelve months. Despite all the colours that are filling up Yahoo’s cash canvas; it still; cannot achieve a staggering $31 per share that it could have had by giving a green go the deal with Microsoft.
The agreement is said to enhance Yahoo’s potential to achieve its target of growing its operating cash flow at large along with providing an open opportunity to invest in ongoing initiatives and a complete freedom to use its Panama paid search results (all this might just have been at a spindle had it signed a deal with Microsoft). President Sue Decker added;
‘This agreement provides a source of funds to both deliver financial value to stockholders from search monetization and to invest in our broader strategy to transform display advertising and advance our starting point objectives with users.’
Yahoo’s CEO and co-founder, Jerry Yang, who has been the target of Icahn-ic fire, added that the convergence represents an important step towards their open strategy and lets Yahoo, build up on the progress it has made so far.However I found something quite misplaced in President Sue Decker’s statement;
‘It enhances competition by promoting our ability to compete in the market place where we are especially well positioned: in the convergence of search and display.’
-Sounds pretty contradictory from the shareholders perspective as the idea to remain independent has wiped off $12 billion in value and concretes Yahoo’s position to remain Number 2 with a staggering difference.
The modus turns out that the clouds of confusion that Yahoo has had the entire world in now side away with the ouster of Microsoft from the deal/no deal picture.
25 Trackbacks / Pingbacks for this entry:
[...] does he opt for an all out favour of the Yahoo – Google deal instead of Microsoft’s acquisition of Yahoo and more importantly will he pull off his [...]
[...] The news also gives rise to suspicion as to whether Microsoft still wants to get hold of the share or plans a total buyout. I personally think that Microsoft would rather bent down on the option for a total control given their previous attempts were drained by a very simple NO from Yahoo last month before they signed a deal with Google. [...]
[...] are more attempts made by Microsoft to acquire some bits and pieces of Yahoo despite a total turn down by either parties at one time or another. The two have come as far as blaming those who had the [...]
[...] feel as if Yahoo came trotting o Microsoft to pinch in a deal that they had denied in favor of a deal with Google. Plus recent hits by Jerry Yang at both Icahn and Microsoft reveal how bruised every one is in this [...]
[...] unfair! How can Yahoo deal with Google and give Google a whopping 90% of the ad market?’ So said Microsoft in a recent US Senate [...]
[...] the proposal from Microsoft (something that made Microsoft cry in the Senate hearing over the Yahoo/Google deal). Yang still keeps his verdict about Icahn stating that the stockholders need not trust [...]
[...] create a Shakespearean limbo in the web world. The deal was called off by Yahoo in favor of the Search partnership with Google, it breathed fresh air and the blame for previous failure for a no deal situation was put up on the [...]
[...] definitely, one can’t miss how Microsoft blamed the bankers and went as far as crying over the Yahoo/Google deal. I would give in credit for that statement by Ballmer. Microsoft sure does fire every [...]
[...] scratched his baldness head when Yahoo/Microsoft deal failed, got a new life and then ended with Yahoo’s teaming with Google. And not just that failed team-up with Icahn that got a no from Yahoo in the most direct manner, [...]
[...] into the Icahn/Yang slashing, then switching over to the Microsoft/Yahoo saga; which began from the dead deal to breathing a new life before it finally collapsed into oblivion as Yahoo turned the deal down and [...]
[...] Yahoo ended on a very low note given the very many reasons; from the conflicts with Icahn, the deal/no deal stories with Microsoft, Jerry Yang’s battles against the Icahn and Microsoft duo all the [...]
[...] has finally unveiled details about its altercation controversial search advertising partnership agreement with Google. The polemic deal that was one of the most discussed topic during the past few days is now [...]
[...] come a site a mere 3 weeks old gain such a high page rank? And then I get an answer, hasn’t Yahoo teamed up with Google at this search ad business? I know that deal was for ads but it does make a team [...]
[...] cause in the coming three months as reported by Todd Bishop. This is largely due to Microsoft’s failure to acquire Yahoo. The present action could very well be to put to use all the money it had gathered [...]
[...] that can be made in the company in order to cope with the goals that Yahoo has promised to achieve after the fallout of the deal with Microsoft (that of course hurt the software [...]
[...] difference in traffics each generates compared to Google. Now this takes me back to the days when Microsoft was so eager having a deal with Yahoo in a bid to rise against Google but even if both were to merge they still would have generated half [...]
[...] company had put down its deal with Microsoft and its board (particularly Jerry Yang) faced immense criticism due to their [...]
[...] appears that everyone is up having their eyes focused at Google-Yahoo deal. The current addition to the list is California Attorney General Jerry Brown, reviewing [...]
[...] the Yahoo/Google deal taking pressure from every corner in order to be ripped off, Google is trying its best to win [...]
[...] thing that’s surely to get some mention would be how to take forward the Yahoo/Google deal; one that is suffering greatly at the hands of lawmakers who consider it bad for competition and the [...]
[...] amount of discontent lurking amongst the Department of Justice and the many eyes that think of the Yahoo/Google deal to be bad for competition, the two have decided to delay their controversial [...]
[...] to be fractionally optimistic that it’s just one dip that every major company takes and a Yahoo/Google deal may very well improve the stock rating, at least on the short term. One it of advice though, [...]
[...] $22, $9 dollars short of the $31 Microsoft had offered to Yahoo which it turned down in favor of a deal with Google. Yahoo since then has been rolling down the hill with stocks falling as low as $13 a [...]
[...] with time has started to appear more mortal with time as it suffers a few setbacks; be it the Yahoo/Google deal, its Street View facing opposition in Germany to the present loss it suffered facing copyright [...]
[...] must have tried out everything to foil the Yahoo/Google deal before it finally decided to give up the idea of buying out Yahoo, but it appears Ballmer has [...]