Yahoo concludes talks with Microsoft, enters into agreement with Google
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In a press release today, Yahoo announced that talks between them and Microsoft have concluded. The two companies are going their own separate ways. After talks had broken down previously between Yahoo and Microsoft over the sale price for Yahoo, there was pressure from billionare investor Carl Icahn for the two companies to resume talks.
Since then Microsoft has stated that it has no interest in acquiring the whole of Yahoo. Talks had resumed over the possibility of acquiring the search business from Yahoo. The Yahoo board has unanimously agreed that it is not a good move for the company and there will be no deal with Microsoft. Had this deal gone through, Yahoo would not have a search business to complement it’s online properties.
Yahoo shares tanked today down 10% after the news. In a separate announcement, Yahoo has entered into an agreement with Google over displaying Google ads on Yahoo properties. The agreement enables Yahoo! to run ads supplied by Google alongside Yahoo!’s search results and on some of its web properties in the United States and Canada. The two companies will also collaborate on increasing interoperability between their instant messaging services.
Detailed press release is available here for the Microsoft and Yahoo announcement and here for the partnership announcement with Google.
