02.04.08

Update on the Microsoft/Yahoo Situation: Google-Yahoo Alliance?

Posted in Google, Microsoft, Search at 8:38 am by Dr. Roy Schestowitz

Earth-shaking decisions and flip-flops

Yahoo and Microsoft. The news is full of it! We have neither covered nor explored these developments properly yet. We only included some relevant links in our daily (or bi-daily) digests. I’ve just sent out an article about this (yet to be published in the more mainstream press), but it neglects to account from some of the very recent developments, including this one.

Yahoo Inc would consider a business alliance with Google Inc as one way to rebuff a $44.6 billion takeover proposal by Microsoft, a source familiar with Yahoo’s strategy said on Sunday.

If this ever materialises, it will be a game changer. Either way, in case you missed this morning's news digest, Google’s original/official complaint about the Microsoft bid is here.

This hostile bid was announced on Friday, so there is plenty of time for these questions to be thoroughly addressed. We take Internet openness, choice and innovation seriously. They are the core of our culture. We believe that the interests of Internet users come first — and should come first — as the merits of this proposed acquisition are examined and alternatives explored.

Very curious was the following report we’ve just come across. It seems to suggest that Microsoft hasn’t as much spare cash as it wishes us to believe.

An interesting side-note on the potential Yahoo-Microsoft deal: Microsoft has only $17B in cash/liquid reserves, but has bid $44.6B for Yahoo.

Recall what was said this morning about Microsoft bluffing it. The information above truly flushes that poker face, does it not?

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