macnn/electronista

05/20/2008, 8:40am, EDT

Tuesday, May 20th

Microsoft 'deal' to break up Yahoo?

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.


Filed under: industry
Other story tags: Microsoft, Google, Yahoo, AliBaba

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Wait...

6
05/20, 8:57am, EDT

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?

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This doesn't sound like a

3
05/20, 9:06am, EDT

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!

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Microhoo

3
05/20, 10:14am, EDT

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

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Mail and Groups

1
05/20, 11:02am, EDT

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.

sadly, this move won't

1
05/20, 12:03pm, EDT

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

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Haha.

-3
05/20, 1:46pm, EDT

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.

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Microsoft doomed

1
05/21, 3:37am, EDT

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

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so did...

1
05/21, 10:57am, EDT

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

What the hell 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 Ass [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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