Hmmm… Well well well. This is SOME news for many days now. Yahoo rejecting Microsoft’s lucrative deal. Roy Bostock (Chairman of Yahoo) says its not lucrative enough, despite the fact that Microsoft had promised billions in ad sales revenue to Yahoo. But there was no surety. 🙂
This puts a lot of pressure on Jerry Yang though. He has to look in the Google deal again, the alternative he has, unless some one else wants to jump in. They say The deal with Google has got a better monetary value and also lesser risk. And why not? Carl Icahn (an investor who bid for Yahoo along with Microsoft) had asked for the ouster of the entire top management of yahoo, if the deal got through. Google on the other hand promises a cash flow of $450million in the first year itself. No wonder or surprises in it. Google leads the online search engine marketing revenues by far.
Microsoft on the other hand might have received a shot in the butt 😛 they have been trying to woo Yahoo for far too long, since the $44.6 billion bid by Steve Ballmer 6 month back was rejected. They have tried several times. However the trick here is, Yahoo doesn’t seem to like to idea of seperating the search business from its core. Microsoft on the other hand has no interest other than the search engine as they are getting desperate to improve their position in SEM.
Well all eyes are on Carl Icahn now, as he tries to woo some more before the yahoo Share holders meeting next month. (Carl Icahn is one of the 9 board members of Yahoo)
Good Luck to Jerry Yang!