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Wednesday, November 5th, 2008

Google Yahoo Deal Ends / Microsoft to Return?

 

The entire “Microsoft seeks Yahoo, Yahoo turns down Microsoft, Yahoo & Google hook up, and then break up, now Microsoft may be back with Yahoo” thing seems like an ongoing plot in a bad soap opera.

Back in June Google announced an advertising agreement that would allow Yahoo to use Google Ads on its websites. Many search marketers were left speculating the impact this would have on campaign effectiveness, however, this was all for nothing now that the Department of Justice has ended the deal.

Now that this deal is no more, the possibility of a Yahoo acquisition by Microsoft will likely be revisited. After news came yesterday that of the collapse of the deal, Yahoo shares saw an 8% rise by close.

According to CNN Money, many Yahoo shareholders are hoping that Microsoft will get back to the table with Yahoo and make a new offer.

The original offer by Microsoft, nearly a year ago, was for $29.06 a share. At the time Yahoo was looking for something along the lines of $35 to $37. Microsoft was willing to go as high as $33.

With Yahoo shares currently trading at around $14, if Microsoft does step up again, you can bet the offer will be much less than it was before. Perhaps Yahoo should have taken the original deal.


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