Yahoo-Google tie-up may not be so close

When Microsoft was threatening to go hostile in its Yahoo bid, Google appeared close to a deal. Now that Microsoft has pulled its offer, things appear to have cooled considerably.

While such a deal is apparently still simmering, it appears to be relegated to the back burner and indeed, may or may not ever boil. Although Yahoo had hoped to have a deal ready to announce this week, that now appears unlikely, according to Marketwatch.

Folks I talked to on Monday offered similar sentiment. One of the hurdles in any deal is trying to craft an agreement that offers enough benefit to Yahoo, without raising too many antitrust red flags.

Analysts have said that a broad search advertising outsourcing pact could generate a substantial boost in cash flow for Yahoo, but it's unclear how large a windfall Yahoo would get from a more narrow pact. Among the possibilities said to also be under consideration are ones that would focus on only a portion of search terms, operate for a limited time, as well as ones that only operated in specific regions. In addition, the companies are said to be exploring options that might open Yahoo's search advertising to other companies, in addition to Google.

Yahoo and Google representatives were not immediately available for comment.

[i_made_this]

$40+ Billion (Even For MSFT) ...

...doesn't get thrown around casually. With everyone from Warren Buffet to the Central Banks of foreign countries acting as Redmond's investment advisors, it was child's play for MSFT to put a maximum value on YHOO. Although it was a fractional difference in price that separated the two, Yahoo still wasn't interested - even though their Board well knows that the company isn't worth half MSFT's maximum offer. Yahoo management pressed the Board into nickle and diming MSFT. MSFT did the right thing. Now, they can document to regulators in 2010 why it is that they hired away from YHOO Yahoo's top 200 engineers, which is all they really wanted out of this deal anyway. MSFT has given up on entering the ad business - their useless search engine is proof that they pulled out of that market long ago and happily turned it over to Google. Just my 2 cents.

[The_Decider]

LOL

If MS could hire away 5% of Yahoo's people it would be amazing.

[mayadanteamihan]

MSFT-psst

Truth is, Microsoft should never have entered the Internet game <br />without first reconstructing, then refining its hardware. They <br />have to learn a hard lesson -- you can't go about life ramming <br />your desire for profits down people's throats. Think about your <br />products first, try to make them so people will love them. Profits <br />come naturally after.<br /><br></br><br />That's what make Google and Apple so successful. Yahoo! will <br />succeed too, all it has to do is strive harder -- you know, not <br />relax too much.