Saturday, October 22, 2011

Google eying on Yahoo, situations competitive for Microsoft

According to the Wall Street Journal, the internet search giant is also eying for the big deal for Yahoo Inc,. The deal which will be bringing together two of the major Internet companies would attract lots of attention from federal antitrust lawyers.

Early in 2008 the deal for a search advertising partnership between the companies was ruled out due to anti trust scrutiny. A year later, Yahoo signed a 10-year search partnership with Microsoft corp.

If the former buys out Yahoo, even Yahoo pages would be showing Google Ads and that would fetch at least 30-40% increase in the Ad revenue that Google is achieving currently. Even the mail boxes will be owned by Google and lots of money would flow in with this investment. But federal antitrust laws would surely show some tough fight.

This comes in the recent event where Microsoft Corp. had a potential joint bid for Yahoo by extending loans to its deal partners and buying preferred stock in Yahoo.

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