Now Google wants a piece of the Yahoo pie

Hot on the heels of news that Microsoft is preparing to finance a bid for troubled web giant Yahoo, Google is reportedly getting ready to rain on Microsoft’s parade with a bid of its own.

The Wall Street Journal - which has revealed much of the information behind the Microsoft bid – reports that Google is also in discussions with private equity firms to finance the purchase of Yahoo’s core business. The Journal reports that Google’s major interest in Yahoo is, unsurprisingly, related to advertising opportunities across Yahoo’s many websites.

Financing private equity firms (or other third parties intending to submit bids) isn’t the same as Google (or Microsoft, for that matter) submitting its own bid to buy Yahoo outright, and might help Google to avoid at least some of the antitrust hassle it would inevitably face if it tried to eat up Yahoo in one big gulp on its own.

It’s also possible though that Google is simply holding discussions to review its options, or even just going through the motions, perhaps with the intention of pushing up Yahoo’s price for other buyers, or forcing other potential bidders, like Microsoft, to submit a premature bid and pay over the odds. It’s widely believed that a potential Microsoft bid for Motorola Mobility (and its patents) forced Google’s purchase of that company at an inflated price earlier this year. It’s not a big leap to suggest that Google might wish to return the favour; Google’s not above playing silly games when it comes to making bids on big companies and assets, after all – it made a number of seemingly nonsensical bids, including one for ‘pi billion dollars’ ($3.14159bn), for Nortel’s patents against Apple and Microsoft, which some believe was just a play to force up the price of the patents for the eventual winners.

It’s good to see the giants of the industry fighting over Yahoo – perhaps its acquisition will finally reverse its long, slow, painful decline into obscurity and irrelevance. On the other hand, perhaps that’s just too much to hope for.

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I love how companies that blatantly claim they arent evil are infact. Apples 1984 commercial and googles slogan - "Dont be evil".

Iridium said,
I love how companies that blatantly claim they arent evil are infact. Apples 1984 commercial and googles slogan - "Dont be evil".

Times change. Apple used to be the "think different" brand, and Google used to be the "do no evil" brand, but the downside of being a public owned company is that some of the most evil and greedy people in the world hold big stakes in how you operate. They don't care for our communist morals, they just want more money.

Majesticmerc said,

Times change. Apple used to be the "think different" brand, and Google used to be the "do no evil" brand, but the downside of being a public owned company is that some of the most evil and greedy people in the world hold big stakes in how you operate. They don't care for our communist morals, they just want more money.


Well, in fairness. At Google, the evil starts at the top...

I'd rather see Microsoft or any number of other companies buy it. Right now Google is pretty much a monopoly risk if they aren't a practical one already. I'd much rather see Yahoo's business and assets go to boost the competition, not make Google stronger. Hell, I'd even rather Apple buy the company >_<

Microsoft should get the search and mail segments. Would be easy to shift their own services over them.

I don't think Google would even be allowed to buy them. They dominate ads enough as it is. Probably just to up the price for other bidders.

This is probably just Google messing with the bids. I see no value in any part of Yahoo for Google, they already have the majority in marketshare in almost everything Yahoo does.

Trueblue711 said,
This is probably just Google messing with the bids. I see no value in any part of Yahoo for Google, they already have the majority in marketshare in almost everything Yahoo does.

+1, I agree. It just shows their immaturity.

I would not like to see Yahoo bought by another giant (except Microsoft). What I would like to see is Yahoo minimize itself, and become a bit more software oriented. I would like to see Flickr stay owned and operated and expanded by Yahoo, as well as maybe a resurgence of a GeoCities type site. They do have great individual sites like Sports, Weather, Finance, maybe build on those. But yeah, gut itself and not reinvent, but just re prioritize.

Would hate to see Flickr in google's hands. They'd kill the quality. Make it work only in ie,ff and chrome and drop all app interoperability outside of their own apps.

HawkMan said,
Would hate to see Flickr in google's hands. They'd kill the quality. Make it work only in ie,ff and chrome and drop all app interoperability outside of their own apps.
GASP! You must be one of those "opera" people my European friends are always telling me about.

HawkMan said,
Would hate to see Flickr in google's hands. They'd kill the quality. Make it work only in ie,ff and chrome and drop all app interoperability outside of their own apps.

*Gasp* Google is so bad for supporting only 99% of what the world uses.

HawkMan said,
Would hate to see Flickr in google's hands. They'd kill the quality. Make it work only in ie,ff and chrome and drop all app interoperability outside of their own apps.

dont worry , it would never be approved by governments because it would make google have wayyyy to big of a market share.. it would be like if microsoft tried to buy apple back in 1999..

HawkMan said,
Would hate to see Flickr in google's hands. They'd kill the quality. Make it work only in ie,ff and chrome and drop all app interoperability outside of their own apps.

hello opera!!! yeah they kill the quality and bring in better quality