And the plot thickens… Ever since the Microsoft bid for Yahoo was announced, there has been plenty of buzz about what will happen next. There also seems to be a lot of “anonymous sources” leaking info to the media and floating stories around the internet.
As was to be expected, Google is less than happy with the idea of its top two competitors teaming up to do battle against them. Google’s legal team jumped into the fray this weekend with a statement online:
“Microsoft’s hostile bid for Yahoo raises troubling questions,” David Drummond, Google’s chief legal officer, wrote. “This is about more than simply a financial transaction, one company taking over another. It’s about preserving the underlying principles of the Internet: openness and innovation.”
As Microsoft portrays the takeover as a move promoting competition because combined the two companies will have a better chance of competing with Google. The pioneers of search see it as another way for Microsoft to use its operating system to channel users to their internet offerings. This is reminiscent of how they torpedoed Netscape back in the 90’s and later ended up with antitrust law suits, which they eventually lost in the US and continue to have problems with in the EU. After years of having a monopoly on PCs with it’s software and operating systems, Microsoft has of late tried to turn over a new leaf supporting openness and competition. The whole idea of this is a bit counter intuitive considering the history of the company. But none the less, in response to the criticism of the deal, Brad Smith Microsoft’s general counsel stated:
“Microsoft is committed to openness, innovation, and the protection of privacy on the Internet… …We believe that the combination of Microsoft and Yahoo will advance these goals.”
According to a number of anonymous sources, Google is having it’s own talks with Yahoo. Of course nothing official has come out yet, but sources are saying that the there is some sort of alliance on the table to help Yahoo fend off the takeover. Whether it is an advertising deal or helping another potential suitor acquire the company. A straight Google/Yahoo merger is very unlikely to make it through antitrust scrutiny.
Yahoo is still playing coy with their decision. In a memo to employees that was obtained by Reuters this weekend(anonymously of course), the top brass said:
“We want to emphasize that absolutely no decisions have been made — and, despite what some people have tried to suggest, there’s certainly no integration process underway.”
So, as Yahoo reviews its options the rumors continue to fly. Even if Yahoo accepts the offer, the whole process could take as much as a year before it is complete.
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