The much talked about Yahoo – Google Deal has finally collapsed. Jerry Yang, Yahoo’s chief executive says he felt let down by Google’s decision to pull out of a advertising agreement between the two internet rivals.
Yahoo’s lack of growth is the main reason behind all this. By next year, the company will have been through four consecutive years with virtually no increase in its cashflow, estimated Mark Mahaney, internet analyst at Citigroup. That is in spite of having one of the biggest global online audiences at a time when advertisers are making a historic shift to the internet, and is a clear sign that it needs to find a new strategic direction, he added.
The $800m deal – which would have enabled Google to sell advertising on some parts of Yahoo’s search engine listings – had been subject to a formal investigation by the US Department of Justice over potential antitrust concerns.
With Yahoo’s other options seemingly closed off, it is little surprise that all eyes yesterday turned back to Microsoft. But talking to an audience of internet entrepreneurs and investors, Yang said the collapse of takeover talks was “not personal” and that he harboured no ill will towards Microsoft chief executive Steve Ballmer.
“People who know me will know that I don’t have an ego about remaining independent,” he said. “I have a lot of respect for Steve and we’d had a lot of good conversations. From my perspective, it’s not personal.”
Source:
http://www.guardian.co.uk/technology…6/yahoo-google
http://www.ft.com/cms/s/0/86e31826-a…077b07658.html
http://forums.webicy.com/showthread.php?t=7468
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