The soap opera continues
Yahoo shares dived ten percent yesterday on news that talks between the company and Microsoft (MS) had broken down. The confirmatory press release said MS was no longer interested in acquiring Yahoo even at the price previously offered, and that the Yahoo board had rejected a partial deal.
The main thrust of the PR was to blunt the threat posed to the incumbent Yahoo board by Carl Icahn, reported previously, by demonstrating that Icahn’s proposal to sell the whole company was a non-starter. To sell Yahoo’s search business alone to MS “would not be in the best interests of Yahoo stockholders,” said the PR. Stockholders seemed to disagree.
Yahoogle
Back-to-back, Google announced a non-exclusive advertising services agreement with Yahoo in the States and Canada, the agreement to include interoperability between the two companies’ IM services.
The agreement gives Yahoo the ability to use Google’s search and AdSense contextual advertising technology, to display Google ads alongside its own natural search results and to serve contextually targeted ads on its US and Canadian web properties as well as on its current publisher partner sites.
“This agreement will preserve the competitive and dynamic online advertising space,” said Google Chairman and CEO Eric Schmidt, mindful of the attention the deal will attract from anti-trust authorities, no doubt with more than a little encouragement from MS.
“Although Google and Yahoo are not required to receive regulatory approval of the arrangement before implementing it,” said the PR, “the companies have agreed to delay implementation for up to three and a half months to give the US Department of Justice time to review the arrangement.”
Yahoo execs bailing out
Jeff Weiner, executive VP of Yahoo’s network division, resigned on Wednesday, followed by senior developer Jeremy Zawodny, who was closely involved in the Yahoo Developer Network. Also out of the door are Chief Data Officer Usama Fayyad, who is also executive EVP of research and strategic data solutions, Mathew Berardo, senior director of international business and product management.
UPDATE 12:20 13/6 - Microsoft released the following short statement yesterday:
“In the weeks since Microsoft withdrew its offer to acquire Yahoo!, the two companies have continued to discuss an alternative transaction that Microsoft believes would have delivered in excess of $33 per share to the Yahoo! shareholders. This partnership would ensure healthy competition in the marketplace, providing greater choice and innovation for advertisers, publishers and consumers.
“As stated on May 3rd and reiterated on May 18th Microsoft was not interested in rebidding for all of Yahoo!. Our alternative transaction remains available for discussion.”
