Printed from http://www.electronista.com

Yahoo rumored ready to sue Facebook over failed talks

updated 06:45 pm EST, Wed March 7, 2012

Looking to cash in on future Facebook revenues

Last week, Yahoo threatened Facebook with legal action over the search engine company's ad, website and messaging patents. Business Insider now claimed that talks between the two companies to resolve the issue have broken down. Sources have reportedly told the news source that Yahoo now will take "formal action" against Facebook, most likely in the form of a lawsuit.

Facebook has not responded to this most recent rumor. Yahoo has responded with the same statement that it made when news of the conflict first broke, that unless Facebook entered into a licensing agreement with the company, Yahoo would be 'forced' to take action to protect its interests.

Yahoo has been struggling as the Internet has evolved. Last year, the search engine's revenues dropped by over 20 percent since 2010. In January, former PayPal president Scott Thompson signed on as CEO. This was quickly followed by the resignation of the company's co-founder Jerry Yang from its board. In early February, three additional long-term board members resigned. Also in February, acquisition discussions with potential Asian buyers, including Alibaba, in which Yahoo has an interest, and SoftBank, fell through. Earlier this week, it was reported that the company was planning a major layoff involving several thousand employees.

If Yahoo does sue Facebook, it will be taking action against one of its strategic partners. In September, the two struck a deal through which Yahoo News was integrated into Facebook so that people using the social networking service could see what Yahoo articles were being viewed by their friends.

If Yahoo is successful in its lawsuit, one insider suggested that the company may be looking for a piece of Facebook's future revenues as compensation. It is also possible that Yahoo may be trying to get Facebook to pay it off and have the matter settled before Facebook's much anticipated upcoming IPO.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Adesso Xtream S3B Bluetooth speaker

Finding a speaker purpose-built for a specific need is challenging. Even when a Bluetooth speaker can be paired with a mobile device, ...

JBL Synchros E40BT headphones

For all the different configurations of headphones on the market, it's always a tough choice for buyers to get something that is just ...

Razer Taipan mouse

The list of gaming devices is growing larger with each passing day. A large number of companies have entered the gaming input arena, a ...

Sponsor

toggle

Most Commented

 
toggle

Popular News