Bidding for Yahoo: Who’s In?

(Ping! Zine Web Hosting Magazine) – Lately, reports have pointed towards internet search engine Yahoo being acquired, and possible suitors (according to rumor) involve two top tech companies: Microsoft and top competitor Google.

As you may have heard, just last month, Yahoo’s board of directors ousted company CEO Carol Bartz. The big move signaled that further changes could be coming soon down the line.

Familiar Territory

Microsoft has a history with the search giant. In February of 2008, the software company proposed buying Yahoo for more than 44 billion. At the time, Microsoft CEO Steve Ballmer stated, “We have great respect for Yahoo!, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.”

However, the deal never went through. But that didn’t necessarily signal the end of Microsoft’s relationship with the search engine.

Following the failed proposal, Microsoft launched search engine Bing in June of 2009. Just a month later, the two companies agreed to a deal that would result in Yahoo search being powered by Microsoft’s Bing.

So how does the deal work? Yahoo! Search gets to keep its name and image, all while being technically powered through Bing’s search databases.

However, a new bid and successful acquisition would give Microsoft complete control over Yahoo’s search (which is still popular for its name). It would also give the company other popular Yahoo service’s including Yahoo! Mail.

In recent years, the search engine has faced faltering popularity due to the success of Google. It’s also no secret that Microsoft has struggled to remain relevant in the area of online services. In the recent past, the company has attempted new efforts, including a high profile acquisition of online communication service Skype (which officially went through this month).

Meanwhile, Google’s involvement in a possible Yahoo! acquisition comes as more of a surprise. A recent report by the Wall Street Journal indicated that the top internet giant had been discussing possible involvement in a Yahoo bid that would involve private-equity firms.

An Interesting Scenario

Google’s involvement in a possible Yahoo! deal could create an interesting scenario, considering the U.S. government’s antitrust concerns involving the company. Such a move could be seen as a successful crush of competition and could further raise those concerns.

While Google and Yahoo are the top suitors, many other types of deals (involving various companies) could occur.

 

Advertisement