Yahoo! says 'no' to Microsoft and 'yes' to Google

So, it's finally over, for now at least. Yahoo! has rejected Microsoft's advances in a deal that would have brought some serious competition to Google in the search engine world.

After several to-ings and fro-ings over the last few months, a "final offer" from Microsoft and even the suggestion of part-ownership, Yahoo! has issued a statement saying, "discussions with Microsoft regarding a potential transaction - whether for an acquisition of all of Yahoo! or a partial acquisition - have concluded".

According to Yahoo!, such a deal "would leave the company without an independent search business that it views as critical to its strategic future".

Naturally Microsoft sees the situation differently and stated: "This partnership would ensure healthy competition in the marketplace, providing greater choice and innovation for advertisers, publishers and consumers," although somehow I doubt it's the consumer that Microsoft is really interested in rather than the success of their Live Search into which they have poured so much development of late. Unsurprisingly they ended with: "Our alternative transaction remains available for discussion."

To rub salt into the wound, Yahoo! agreed a deal with Google to use Adsense adverts on Yahoo!'s search pages and its other web properties in North America. From Yahoo!'s point of view it will make more money but only by supplying more revenue to Google at the same time, while Microsoft can only grit their teeth and long for the day that people will say, when the don't know an answer, "I'll go home and Microsoft it."

(via vnunet)

Related posts: Microsoft explores partial acquisition | Microsoft steps away from Yahoo!

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