Google, Microsoft & Yahoo – The Deal

Now then. This is all starting to sound like the plot of a 1930s Hollywood blockbuster, glorious Technicolour and all. It has that Gone With The Wind feel about it somehow. In a move similar to Rhett Butler’s 'Frankly My Dear I Don’t Give a Damn' pronouncement, last night Yahoo announced a joint advertising and online search deal with Google and told everyone that the Microsoft talks were over. Microsoft say they don’t want Yahoo anymore, but aren’t ruling out a fresh attempt to buy some of the company.

Confused? The bald facts are as follows: In a press release yesterday, Yahoo stated that ‘talks with Microsoft have concluded’. Yes. Well, I think that’s because Microsoft drew a line in the sand at 47.5 billion dollars. But, hey, what’s a couple of weeks and good PR! Now it’s Yahoo who has ‘concluded’ talks. But, if you can believe it, Microsoft have said today that they will be open to an ‘alternative transaction’. Meanwhile in a separate press release yesterday Yahoo announced they’d signed an agreement with Google which allows the following:

‘[It] enables Yahoo! to run ads supplied by Google alongside Yahoo!'s search results and on some of its web properties in the United States and Canada. The agreement is non-exclusive, giving Yahoo! the ability to display paid search results from Google, other third parties, and Yahoo!'s own Panama marketplace. 

Under the terms of the agreement, Yahoo! will select the search term queries for which - and the pages on which - Yahoo! may offer Google paid search results. Yahoo! will define its users' experience and will determine the number and placement of the results provided by Google and the mix of paid results provided by Panama, Google or other providers. The agreement applies to paid search and content match and does not apply to algorithmic search. The agreement also applies to current partners in Yahoo's publisher network.’

While I’m not sure Microsoft will look painfully out at the ravaged techno landscape, pull their shoulders back, run a hand across their brow and say: Tomorrow’s Another Day, I do think they’ll be back for another stab at buying part or all of Yahoo. Lets face it, the bigger and more successful Yahoo becomes the better for the eventual purchaser…And you can read anything into that you want!