Google-Yahoo ad deal may be over

Speculation is growing that the Google-Yahoo ad deal may be dead in the water.

In recent weeks Google and Yahoo have been attempting to finish up an advertising deal meaning Google ads would be displayed on Yahoo search results.

Several advertisers and Microsoft raised objections to the deal. They feared that the partnership would limit competition, raise prices and reduce choices in the web advertising industry.

According to the deal both Google and Yahoo are looking at dropping the partnership due to the department of justice's investigation since June. It is rumoured that the DoJ wanted to impose restrictions on the deal and that both Google and Yahoo may not profit from it as much as they had hoped.

Sources at the deal said "The DOJ could file a complaint seeking a preliminary injunction on the agreement even as the parties assess their options. Antitrust lawyers said the government would have to clear a high hurdle to win a preliminary injunction. But it is even less likely that Google and Yahoo! would want to battle the government in court over such a controversial deal, particularly while the financial market is so precarious, the lawyer said."

Yahoo will announce it's Q3 results this evening on a conference call with investors. Coupled with the results will be an announcement of job losses and cost cuts. In recent days the number expected to lose their jobs was set at 3500.

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Won't they get delisted if they break the buck (drop below $1 a share)?

With a 60% share value decline YTD and increasingly dire options I see a painful future for them.

Yahoo! should have just accepted Microsoft's offer regarding the takeover.

Sure it would have meant 'bowing down tot he big monster'.

But at least it would mean Google has less of a stronghold on the market, which is always a good thing.

I mean, if Yahoo! goes down now, all it does is increase the lead Google has on everyone else.

Didn't Microsoft hire some of Yahoo's top engineers earlier in the year when they were trying to do the hostile bid? If so, they may not even need Yahoo anymore if they already got their people.

yahoo has a pretty good control in the portal market which is what MS (in my opinion) would like to zero in and of course, a relatively stronger competitor to google. they may have yahoo's top engineers but MS is not the type of company to "waste" time coming up with an idea from scratch to compete when something solid that works already exists and is becoming an increasingly greater bargain.

no, not just you. i could see MS making a hostile bid for yahoo after the share price plummets further. i wonder how much losses carl icahn has taken from this given his buying point was around 23/share and it was a billion dollar bet, and he'd probably do all he can to have the company sold to MS for as much premium as possible to limit his losses.

mass layoffs at yahoo would probably help the synergy if MS acquires it as they'll have to worry about less expenses and possible turnover (though i don't think the employees ever minded the acquisition).

ballmer played a cheap trick by mentioning that they could still buy yahoo and then have MS dismiss the idea - it only thrashed yahoo's stock more. all in all, just becoming cheaper and cheaper. if MS actually had management with even minuscule foresight i would say the acquisition would be a great idea, but given how things are, i'm not sure if it'd fare well for the end user. it's sad to see a company (MS) with so much resources and potential being run by management that's still in 90's mindset. such a waste.