Thursday, April 10, 2008

Yahoo Partners with Google To Fight Against Microsoft

The corporate war between Yahoo and Microsoft is turning ugly day by day. We would think companies of this size, the size of Microsoft and Yahoo, never stop so low. But it is happening.

Microsoft offered a bid to acquire Yahoo couple of months ago and Yahoo rejected it stating bidding price is very less.  Microsoft continued to pursue Yahoo bid by threatening to overturn Yahoo's board of directors with the help of share holders.

In reply to Microsoft's Threat  Yahoo joined hands with Google by signing an agreement to run Google Ads on Yahoo search pages. Yes what you read is absolutely right. Yahoo is going to test run displaying Google Ads instead of their own ads!.

Yahoo!’s board of directors is exploring strategic alternatives to maximize stockholder value, including exploration of potential commercial business arrangements.

Microsoft has respondedto Yahoo's partnership with Google

Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.

Via TC