"We informed the Justice Department before we launched this test and we have been responsive to their questions about it," Google spokesman Adam Kovacevich told Reuters. Yahoo had a similar comment to the wire service.
Updated 2:15 p.m. PDT, with comments from CEO Jerry Yang on the conference call.
The Microsoft takeover effort was both between the lines in Yahoo's earnings report and on the bottom line itself.
The bottom line part was Yahoo's notation that it spent $14 million on outside advisers related to both Microsoft's bid and exploring other alternatives, as well as for litigation costs related to the bid.
The between the lines stuff was in Chief Executive Jerry Yang's comments. In some ways, his words sounded like more of the same.
"As outlined in … Read more
This week is shaping up to be a big one in Microsoft's nearly 3-month-old effort to acquire Yahoo.
The software maker has set a Saturday deadline for Yahoo to come to the bargaining table or else face a proxy fight.
Coloring the state of things will be earnings reports from both Microsoft and Yahoo due this week. Yahoo reports Tuesday, while Microsoft is set to release quarterly numbers on Thursday.
Those reports are all the more significant in that Microsoft's bid (at least so far) is half stock. A good earnings report from Yahoo might put pressure on … Read more
Microsoft's attempt to acquire Yahoo is expensive, but there could be a significant other expense for the software maker: retention bonuses.
Microsoft Chief Executive Steve Ballmer publicly discussed these payments to keep Yahoo employees from leaving, saying that "we intend to offer significant retention packages to your engineers, key leaders, and employees across all disciplines." But The New York Times on Wednesday dug out a number that puts the retention bonus factor into perspective.
Microsoft, while entertaining an alliance with News Corp. or other options, would rather buy Yahoo on its own, Reuters reported Sunday, citing a source close to the company.
In addition, an unnamed source told Reuters that News Corp. is talking to Yahoo directly about a tie-up, though the source didn't share details.
Microsoft's attempt to acquire Yahoo has spawned a flurry of possible alliances and counter-alliances, none of them confirmed by the companies except a partnership under which Yahoo will test use of Google's search ads.
In an attempt to improve the relevance of ads attached to search results, Yahoo plans to adjust the process advertisers use to bid for placement as soon as next week.
Today, there's a minimum bid of 10 cents per keyword. Soon, though, Yahoo will move to a variable minimum price, the company said Friday. The new minimum price could be higher or lower, depending on the keyword and the quality of the individual advertiser who's bidding for it, the company said.
For example, with the new system, a minimum bid--called a reserve price--could be lower for a high-quality … Read more
D: All Things Digital's Kara Swisher has a nice insidery account of a meeting various Yahoo executives apparently had Thursday with Chief Executive Jerry Yang. The upshot: they (and various other Yahoo employees she said she spoke to) have mixed feelings about being subsumed by Microsoft but recoil at the prospect of acquiring AOL.
The employees she surveyed think Time Warner's AOL is "slow-moving, weak in technology, and saddled with a largely dispirited staff," Swisher said. (Unsurprisingly, that assessment is the polar opposite of that from AOL CEO Randy Falco, who pondered AOL's appeal to others … Read more
In 24 hours, we've gone from plain old Microhoo to Yahoogle and Microspace. What's next--Yahoobay?
Clearly, Microsoft's attempt to acquire Yahoo has prompted some serious outside-the-box thinking. But now is a good time to think carefully about what's a thought experiment with tactical value and what's a real business possibility.
First, to recap: Everybody knows that Microsoft wants to acquire Yahoo and has threatened a proxy fight and lower price if Yahoo doesn't sign up within three weeks. Another definite move is a limited Yahoo trial of search advertisements from Google, Yahoo's largest … Read more
As spectators of the Yahoo-Microsoft-Google-AOL marital fight, the employees at Yahoo might have the worst seats in the house.
Not only are Yahoo's rank-and-file still undergoing reorganization after the company's layoffs two months ago, but they're also having to endure constant self-help messages from management whenever there's bad news in the media about Yahoo. (And that's fairly often these days.)
According to one Yahoo employee, executives regularly send internal communications restating that Yahoo is "doing the right thing" and is more valuable by remaining an independent company.
That message is generally positive, but … Read more
Yahoo will test the use of Google advertisements on some of its search pages, the companies said Wednesday, a move that raises the possibility of a significant departure from Yahoo's present ad strategy.
"Yahoo will be testing Google's AdSense for Search service, which will deliver relevant ads alongside Yahoo's own natural search results. This is only a limited test, and does not necessarily mean that Yahoo will join the AdSense program," Google spokesman Daniel Rubin said.
The test is narrow in scope, Yahoo said: "The test will apply only to traffic from yahoo.com … Read more