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Microsoft 'deal' to break up Yahoo?

updated 08:40 am EDT, Tue May 20, 2008

MS Yahoo May See Breakup

Microsoft's proposed new transaction with Yahoo is likely to involve a breakup of the latter company, say sources allegedly close to the Wall Street Journal. The claim would have Microsoft buy Yahoo's search ad business and also divest itself of its Asian interests; in return, Microsoft would make a minority investment in the smaller Yahoo that results from the deal. A reason isn't given for selling off the Eastern assets, represented by AliBaba, though the China-based company voiced opposition to Microsoft in part due to fears of a management takeover following the abortive attempt to buy Yahoo as a whole.

Most specifics of the tentative proposal are unknown, though the effort would most likely see Yahoo drop its own search ad system in place of Microsoft's own, effectively inflating Microsoft's web ad share by putting its ads on a higher-profile search page than its own Windows Live service.

Simultaneously, Yahoo is still reported continuing talks to turn its earlier Google AdSense trial into a permanent project. The rumored deal would allow most any company to bid for search ad space on Yahoo and is believed by many observers to be a deliberate maneuver to thwart Microsoft's earlier takeover attempt as well as a subsequent attempt by institutional investor Carl Icahn to control Yahoo's board and force a Microsoft deal.

By Electronista Staff
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  1. njfuzzy

    Fresh-Faced Recruit

    Joined: Apr 2001



    So, Yahoo refused to sell the company to Microsoft. The response is that Microsoft would just like to buy the only long-term revenue-generating branch of Yahoo (the advertising)? Why in the world would Yahoo agree to that?

  1. horvatic

    Fresh-Faced Recruit

    Joined: Apr 2002


    This doesn't sound like a

    This doesn't sound like a deal to me either. Microsoft wants to take away Yahoo's only form of income. If Yahoo agrees to this, there really STUPID!!!!
    Actually any deal with Microsoft right now would only lead to the destruction of Yahoo period!

  1. scotte75ky

    Fresh-Faced Recruit

    Joined: Jan 2008



    Yeah, this pretty much stinks. Yahoo would be stupid to go this route.

  1. Guest

    Fresh-Faced Recruit

    Joined: Nov 1999


    Mail and Groups

    So what happens to Yahoo mail and groups? Do they stay with the part that goes to MS or stay with the smaller Yahoo part? None of this sounds good to me.

  1. Flying Meat

    Dedicated MacNNer

    Joined: Jan 2007


    sadly, this move won't

    lead to a "new and improved" Microsoft. It will just kill Yahoo. AntiTrust? Public interest?

  1. luckyday

    Fresh-Faced Recruit

    Joined: Apr 2008



    Antitrust and public interest? Haha. Jeez. I don't think you know what those words mean...

    It's not like yahoo would be giving up anything for free. Lot of money on the table. Don't think you can call anyone stupid for accepting an enormous sum of money...

    You guys are all brilliant business men.

  1. LunarMoon

    Fresh-Faced Recruit

    Joined: Jan 2008


    Microsoft doomed

    The despair of Microsoft in trying to grab Yahoo at all costs is a certificate of incompetence that says "We are incompetent and unable to do by ourselves, lets buy something that is already done".

    Microsoft should terminate its business and go sell fish in the docks.

    Obviously, the intention is to destroy

  1. UberFu

    Fresh-Faced Recruit

    Joined: Oct 2002


    so did...

    Jerry Yang piss Steve Ballmer off the last time he called him "Monkey Boy" ?

    What the h*** is this vindetta against Yahoo that M$ seems to have ?

    We can't force you to sell your company to us - so no can have you now?

    There will be no more Yahoo in 5 years 'cause M$ will have dissolved it?

    What Yang and Company need to do is start a hostile takeover of M$ [using some 3rd Party anti-M$ Investors] Until they have enough of a stake in M$ to force a vote on the board to can Ballmer's a** [and the rest of him]_ Then sue him for being an idiot so that he ends up on the street begging for internet access [and food]

    Actually - better idea - holding a sign that reads "will destroy your company for food"

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