Yahoo announced on Thursday afternoon that it had turned down an offer from Microsoft to buy its search business and entered in a 10-year advertising deal with Google, thereby ending a high-stakes takeover drama that has stretched nearly more than four months.
The investors are less confident about the deal and immediately after the announcement yahoo stock prices fall to 10 percent. But this is only a one side of the coin. On the other side this deal gives a much awaited relief to the Microsoft’s investors, saying that the firm has saved from giving a amount of 44.6 billion dollars in stock and cash to yahoo. This move clearly reflected on the NASDAQ also rising the Microsoft shares by 5 percent.
The deal lets yahoo to run ads supplied by Google alongside Yahoo Internet search results and on other some of its web properties in the
But the deal with Google also includes a penalty to the firm. It means Yahoo has to pay a hefty amount of 250 million dollar to Microsoft. Microsoft is definitely enraged by this deal and warned that a Yahoo-Google partnership raises anti-trust concerns because it would cover some 90 percent of online advertising.
Here are the exact comments of some of the renowned people of this field.
Barak Orbach, a law professor at the
But Glen Manishin, a partner with Duane Morris, said he thought the deal would increase competition because advertisers would be able to get roughly the same service from Yahoo or Google.
Bert Foer, president of the American Antitrust Institute, said he would be concerned that any Yahoo-Google alliance could reduce the number of "independent platforms" in the advertising market.
Whatever these guys say about the deal but in my opinion the online ad industry definitely suffer from it. In every search whether it is Google or Yahoo, there will be same advertisers and public will be left with very less choices. And let me know how you feel about that through the comments box.
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