Yahoo May Re-Consider Google Alliance, Rebuff Microsoft

anastasd writes "Reuters is reporting that Yahoo might consider a business alliance with Google as a way to top a $44.6 billion takeover proposal by Microsoft. 'Yahoo management is considering revisiting talks it held with Google several months ago on an alliance as an alternative to Microsoft's bid, that source said. At $31 a share, Yahoo believes the bid undervalues the company, two sources said. A second source close to Yahoo said it had received a procession of preliminary contacts by media, technology, telephone and financial companies. But the source said they were unaware whether any alternative bid was in the offing.'"

Comments

I'd be sad if Microhoo goes ahead

[_merlin]

Do I like Yahoo? Not really. But I don't really like Google or MS either. The less of these online service providers there are, the worse it will be for consumers. I hope Yahoo continues to exist in some form or another just so there are more players in the marketplace. That means more choice, more competition and a better experience for users.

What's in it for Google?

[EmbeddedJanitor]

Google has 4 times the search hits of yahoo and is growing. Why spend 45bn on a sinking enemy? Just wait a year or two and yahoo will be no more anyway. MS + yahoo are individually sinking in the service space and together they'll just sink faster. Sure Google must make some anti-trust grumblings, but in reality they must love the sight of their worst competitors sinking eachother.

Google can use the 45bn in far better ways by cutting into new markets & technologies (eg. Android).

Re:What's in it for Google?

[Amorymeltzer]

Yahoo is ANYTHING but sinking. Yahoo.com is still the number one most visited site on the web (check alexa). Now, Google happens to be number two, followed by youtube. Who in their right mind wouldn't want the top three websites? I'D shell out $45B if I had it.

Not that it would happen, but imagine if Google acquired Yahoo. They'd have vast resources of hardware and user accounts at their dispense - two things that Google especially wouldn't mind having. A merger between Yahoo and Google groups? News? Oh, and did I mention they're the number one site on the web?!

A more likely option, avoiding the anti-trust nonsense, would be Google purchasing some stock in Yahoo, or the two coming to some sort of mutual agreement such that Yahoo can consolidate and focus funds and Google gets some new toy.

By no means is it a dumb idea for either of them. The only person who loses is Microsoft, and I think everyone can agree that's an acceptable loss.

Re:Their (lack of) privacy policy

[Enderandrew]

Really?

Is that why when the US government was demanding search data, that Google was the only company willing to butt heads with the government to protect privacy, while Yahoo, AOL and Microsoft all volunteered private data?

To say that Google lacks a privacy policy is pure fiction. http://www.google.com/privacypolicy.html

Next time check your facts.