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Google 'close' to bailing out Yahoo

Daniel Fleshbourne   on 18 April 2008 - 14:51 · 29 comments & 15756 views

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Google and Yahoo are reportedly moving closer to striking an advertising deal that could foil Microsoft's takeover bid. The proposal would see Yahoo hand over its search advertising operation to Google in a deal that could yield Yahoo as much as $1bn in new revenues, according to reports in The Wall Street Journal.

The publication cited anonymous sources within Yahoo as saying that the outsourcing deal had been granted initial approval and will move forward. The arrangement would give Yahoo another weapon in its effort to ward off a takeover attempt by Microsoft. The Redmond giant has been attempting to push Yahoo's board to accept its $42bn proposal since February.

View: The full story @ vnunet

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(3 replies) #1 Dogward on 18 Apr 2008 - 14:56
And so we'll have a big giant (Yahoogle ? ) ... I'm against it, totally. I'd rather have microsoft buying out yahoo and have 2 more or less strong giants than having only one...
#1.1 Cøbra on 18 Apr 2008 - 16:34
I don't think Google really wants to "buy" Yahoo!

Google has never been (and afaik, doesn't want to be) a content provider, but is instead a service provider.

I think Google owes this to Yahoo!, after all, Yahoo!'s search engine was initially Google-powered, which is how Google became the juggernaut.
#1.2 toadeater on 18 Apr 2008 - 21:51
(Dogward said @ #1)
And so we'll have a big giant (Yahoogle ? ) ... I'm against it, totally. I'd rather have microsoft buying out yahoo and have 2 more or less strong giants than having only one...


Why does anyone have to buy Yahoo? Microsoft started all this with threats of a hostile takeover, now Google and the rest of the tech industry has no choice but to help keep Yahoo out of the clutches of maniac Steve Ballmer. No one will buy Yahoo if MS backs down, it's not like Google was planning to.

So don't kid yourself about "giants." The only evil giant here is Microsoft and it's oblivious CEO who JUST DOESN'T GET IT. This isn't 1995!
#1.3 HawkMan on 19 Apr 2008 - 09:09
Yahoo will die without MS anyway.

Google would just be doing this so they don't get the competition from the then strengthened MS/Yahoo wich while it wouldn't be as big as google, it'd be a lot closer. So basically if google gives them money to stay away from MS (while only the top managers on Yahoo don't want to merge) they are effectively dooming Yahoo and sending even more yahoo employees out on job hunts.

YEah google i o nice to do this out of no self interest...
(9 replies) #2 Deathray on 18 Apr 2008 - 15:20
I am not surprised... I am really starting to hate google
#2.1 Skyfrog on 18 Apr 2008 - 15:21
Then you would rather Microsoft buy up Yahoo instead of it remain a separate company? Google isn't buying Yahoo here.
#2.2 Deathray on 18 Apr 2008 - 15:30
(Skyfrog said @ #2.1)
Then you would rather Microsoft buy up Yahoo instead of it remain a separate company? Google isn't buying Yahoo here.


Yeah... I would like to see Microsoft buy them out... That way at least there would be a chance for a little competition
#2.3 draklin on 18 Apr 2008 - 15:36
(Deathray said @ #2.2)
(Skyfrog said @ #2.1)
Then you would rather Microsoft buy up Yahoo instead of it remain a separate company? Google isn't buying Yahoo here.


Yeah... I would like to see Microsoft buy them out... That way at least there would be a chance for a little competition


The best solution is for nothing to happen and everyone stays the same. However, that doesn't have a chance of happening now. So which is worse, a Google/Yahoo partnership that will rule search and online ads or Microsoft/Yahoo that will control a good percentage of the search and online ads AND most of the desktops?
#2.4 Skyfrog on 18 Apr 2008 - 16:32
(Deathray said @ #2.2)
(Skyfrog said @ #2.1)
Then you would rather Microsoft buy up Yahoo instead of it remain a separate company? Google isn't buying Yahoo here.


Yeah... I would like to see Microsoft buy them out... That way at least there would be a chance for a little competition


If Microsoft buys them there will be less competition.
#2.5 HalcyonX12 on 18 Apr 2008 - 17:18
(Deathray said @ #2.2)
Yeah... I would like to see Microsoft buy them out... That way at least there would be a chance for a little competition


There are 3 major players in the search market with a few minor players... How is that no competition? It's not even as bad as the PC processor market with AMD vs Intel as two major players... and it's not nearly as lopsided as competition in the desktop OS space.

And in terms of search, Google has to stand up to the same expected quality every day, otherwise it's as simple as changing a bookmark (even then, MSN is the default search of the default browser of the default OS)... the barrier of entry is the same for Yahoo MS and Google at this point. It's not like Google has a monopoly on the search market... They're doing very well, but it's not a monopoly, and the market is very volatile.

Last edited by HalcyonX12 on 18 Apr 2008 - 17:25
#2.6 +Dakkaroth on 19 Apr 2008 - 04:41
(Deathray said @ #2.2)
Yeah... I would like to see Microsoft buy them out... That way at least there would be a chance for a little competition


Well, that's the most backward statement I've read today.
#2.7 HawkMan on 19 Apr 2008 - 09:12
(HalcyonX12 said @ #2.5)
(Deathray said @ #2.2)
Yeah... I would like to see Microsoft buy them out... That way at least there would be a chance for a little competition


There are 3 major players in the search market with a few minor players...


no there is ONE major playe, two barely scraping ovoer minor and some very minor players. And the sad thing is this has nothign to do with quality, it's just the way it is. Efectively we have no competition, if there wasGoogle would have had to improve their search engine a long time ago now.
#2.8 cork1958 on 19 Apr 2008 - 12:07
"I am not surprised... I am really starting to hate google"

Nice to see someone else coming to their senses!!
#2.9 +macf13nd on 20 Apr 2008 - 16:58
There are 3 major players in the search market with a few minor players... How is that no competition? It's not even as bad as the PC processor market with AMD vs Intel as two major players... and it's not nearly as lopsided as competition in the desktop OS space.

And in terms of search, Google has to stand up to the same expected quality every day, otherwise it's as simple as changing a bookmark (even then, MSN is the default search of the default browser of the default OS)... the barrier of entry is the same for Yahoo MS and Google at this point. It's not like Google has a monopoly on the search market... They're doing very well, but it's not a monopoly, and the market is very volatile.


this is very well thought out, esp with ref to the market being volatile. Ask anybody from 1999, and they would tell you that the search market was 'monopolized' by Yahoo!.

A hilarious concept now, methinks. Google have a great thing going on right now, but it doesn't take much for things to change in a market like this. A few shortcomings here, a few more there, it spreads around the internet through digg, web enthusiasts (like neowin users) turn, the drama spreads further and it dies. It doesn't have the advantage of being the default engine out of the box (like Live Search now, and Yahoo! on older boxes...)

Google need to constantly maintain their standard of search service, and broadening their horizons is the best way to do it.

I don't care either way; I use google daily, even hourly, because its the best service out there. I would have no qualms about changing if they fell by the wayside or were superceded.

I'd just get irritated because I'd have to change my internal dictionary in my mind!
(1 reply) #3 GreyWolfSC on 18 Apr 2008 - 15:24
Cool. Then Google and Yahoo can implode together. At least Microsoft has something to offer besides web services.
#3.1 hapbt on 18 Apr 2008 - 20:05
yeah this whole web thing isnt going anywhere, how stupid ha ha ha
(1 reply) #4 vetneufuse on 18 Apr 2008 - 15:35
What happens when you combine the two biggest search engines out there? nothing good thats for sure...
#4.1 toadeater on 18 Apr 2008 - 21:57
(neufuse said @ #4)
What happens when you combine the two biggest search engines out there? nothing good thats for sure...


Like I said, who's fault would this be? Who attacked Yahoo? It wasn't Google.
(1 reply) #5 Enkazin on 18 Apr 2008 - 15:48
jesus christ, I wish I had bought shares of google when they were first starting. I could be a damned billionair right now also
#5.1 +macf13nd on 20 Apr 2008 - 16:59
they were only floated recently.....
#6 Burst404 on 18 Apr 2008 - 15:51
Great, if the Gahoo/Yoogle actually goes through... We'll see what they want us to & search results will depend on the highest bidder, not the best match...
(1 reply) #7 lbmouse on 18 Apr 2008 - 16:05
Since Microsoft has lost its Midas touch lately, I think it is good that they can't get their greedy, grubby little hands on Yahoo. Plus, from the article:
"Since the acquisition offer was first made, analysts have speculated that Yahoo would seek out a deal with former rival Google in attempt to preserve its independence."

It's better for the consumers and the market to have as much competition as possible. As long as Yahoo remains fully independent, it is still a search engine competitor. A full acquisition by MS would decrease the number of Google competitors. Without competition, Google is likely to get lethargic and lazy (look at MS over the past decade).
#7.1 Magallanes on 18 Apr 2008 - 16:55
Last year Microsoft increased their profit so yes, MS is still a "money machine" over Google and Apple.
#8 z0phi3l on 18 Apr 2008 - 16:06
Considering Yahoo's options, the partnership with Google is the best deal for Yahoo and their stockholders


All MS was going to do was buy Yahoo, then shelve it because they are pushing hard for their "Live" garbage


At least with Google, Yahoo remains a viable business, with MS you end up loosing a Business and you end up with Live and it's garbage and the clear winner Google, this way both Yahoo and Google keep MS in check
#9 Jugalator on 18 Apr 2008 - 17:37
(1 reply) #10 C_Guy on 18 Apr 2008 - 19:45
Since when does Yahoo need bailing out? I hope Microsoft pulls out now that they've realized they don't really need to buy Yahoo.

And I hope Google gets hit with an anti-trust lawsuit. Their "do no evil" hypocrisy is getting annoying.
#10.1 z0phi3l on 18 Apr 2008 - 22:11
(C_Guy said @ #10)
Since when does Yahoo need bailing out? I hope Microsoft pulls out now that they've realized they don't really need to buy Yahoo.

And I hope Google gets hit with an anti-trust lawsuit. Their "do no evil" hypocrisy is getting annoying.




Anti-trust lawsuit for what? Don't be a Moron and realize that the Partnership guarantees MS doesn't eat up Yahoo, Yahoo gets to stay alive and Google gets some extra publicity, nothing Illegal going on, if anything MS was the one that needed to be looked at for any ant-competitive actions
#11 Azmodan on 18 Apr 2008 - 21:17
I felt a great disturbance in Microsoft, as if millions of chairs suddenly cried out in terror and were suddenly thrown...
#12 jwjw1 on 20 Apr 2008 - 16:11
Microsoft is foaming at the mouth towards Google.....hahahaha!!

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