Coffee Break
Extra! Extra! Read all about it!!
In this week’s Coffee Break, we take a look at the daily papers to find out what’s been going on in the online world of business.
The big news in the Wall Street Journal is that not only did Microsoft’s Bid to takeover at Yahoo! (at $33 per share) fall through - but their smaller bid to buy Yahoo!’s Search business and take over 16% of their company at $35 per share ($7.73 billion) also fell through. Yahoo rejected Microsoft’s offer on Thursday and the very next day made a pact with Google to display some of Google’s ads on their results pages!!
The deal with Google is expected to generate $800 million in annual revenue for Yahoo! and is hoped to placate shareholders upset about the failed negotiations with Microsoft.
Exactly how that revenue will be raised, has some advertizers worried. They believe that a deal between Yahoo and Google is dangerous and may cause businesses to end up paying higher ad rates.
While I would expect Microsoft to be crying foul, PCWorld reports that at least one group of consumers has raised concerns to the US government about the “monopolistic concentration” that the pact will generate.
And the government has responded, stating that they will also be taking a look at the Google-Yahoo agreement to ensure that it doesn’t violate anti-trust laws.
If you’d like to read Google’s perspective on the Yahoo deal - you can check out their official blog. Although it reads a lot like a press release it is the blog entry of Omid Kordestani, Senior VP, Global Sales and Business Development. Omid’s post outlines why this deal is not in violation of anti-trust laws.
And lastly, to see Yahoo!’s perspective on why the Google Deal is actually good for competiton - check out their blog entry written by Jerry Yang, CEO and Chief Yahoo.
What’s your take? How will the Google-Yahoo pact affect your ability to get noticed on the web?
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