Google wins from end of Microsoft-Yahoo affair

Microsoft announced that it had given up its quest for Yahoo! which reject the Microsoft's offer of 46 billion dollars.

The announcement ended three months of overtures by the computer giant, which wanted to merge with Yahoo to gain ground on Google.

Meanwhile, Google was involved in multiplying its innovations and has also announced its advanced image search technology.

According to the new analysts, Microsoft-Yahoo talks have benefited Google.

"Microsoft did the smart thing -- they walked," said Silicon Valley analyst Rob Enderle. "Yahoo's stock price is going to come down like a rock on Monday."

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Google and Yahoo to share web ads

Yahoo and Google, the world's two biggest search engines, have announced a two-week experiment that will see them share advertising space. During the pilot, Google will be able to place ads alongside 3% of search results on Yahoo's website.

It has been said by the Analysts that the main reason of designing this move is to frustrate Microsoft, which offered Yahoo for $44.6bn (£22.6bn).

New York Times reported that Microsoft and News Corp. are focusing on a joint bid for Yahoo. The concept is to combine three of the world's most visited websites: MySpace, Yahoo and MSN.com.

On the other hand, according to the Wall Street Journal, Yahoo is seeking for Time Warner's AOL deal to keep out of Microsoft's hands.

"It looked like Microsoft had all the cards, Yahoo is at least now able to use this for leverage to get Microsoft to pay more," said Cowen and Co-analyst Jim Friedland.

Source: BBC News

Yahoo! wants more money

The Board of Directors of Yahoo! Inc., sent a reply to Steve Ballmer, CEO Microsoft.

The letter states, "At the same time, we have continued to make clear that we are not opposed to a transaction with Microsoft if it is in the best interests of our stockholders. Our position is simply that any transaction must be at a value that fully reflects the value of Yahoo!, including any strategic benefits to Microsoft, and on terms that provide certainty to our stockholders."

Further, it says, "We consider your threat to commence an unsolicited offer and proxy contest to displace our independent Board members to be counterproductive and inconsistent with your stated objective of a friendly transaction."

In short, either Microsoft pays more for a peaceful takeover, or prepares itself for a corporate war.

Read the whole letter at source.

Ballmer sets deadline for Yahoo

Yahoo has three weeks to accept the Microsoft's 31-a-share cash-and-stock offer. It is stated in the letter which was been sent to the Yahoo's board of Directors.

"If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors," Steve Ballmer, CEO Microsoft wrote.

If Microsoft don't get reply till the deadline, then the offer will be reduced.

"That action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal."

As of now, the letter is being reviewed by Directors.

Full story at source.

Google troubled by Microsoft

Google has said it finds Microsoft's $44.6bn (£22.65bn) bid to buy rival Yahoo "troubling" and wants regulators to scrutinise the proposed deal. Microsoft made an unsolicited offer for Yahoo on Friday and Yahoo showed its consideration.

Microsoft laywer Brad Smith and chief executive Steve Ballmer mentioned that the merger would create a healthy competition for Google.

Although Microsoft is the dominant force in personal computer operating software, a tie-up with Yahoo could help it repositioning itself with more applications moving online, analysts say.

"This is clearly Google's opening move in a complex game of chess that will encompass ordinary users, politicians, regulators and businessmen" - Darren Waters, technology editor, BBC News website.

I believe, the Yahoo's search engine would be the main constituent part for Microsoft along with its email, shopping and news portal to compete with google.

"We believe that the interests of Internet users come first - and should come first - as the merits of this proposed acquisition are examined and alternatives explored,' the Google statement said.

Yahoo has yet to accept the offer, but analysts have said it is too good for the struggling internet veteran to refuse and that US regulators are unlikely to find any grounds to stop it.