Microhoo is a thing of the past. Hello Google!

It ain’t over ‘til the fat lady sings. What do we know about Microsoft and Yahoo!. The latest is that supposedly, they’ve called it quits.

Yahoo! issued a communication declaring that all intentions and possible transactions regarding what could have been a partial or ‘all out’ merge with Microsoft, have come to an end. ‘With respect to an acquisition of Yahoo!’s search business alone that Microsoft had proposed, Yahoo!’s Board of Directors has determined, after careful evaluation, that such a transaction would not be consistent with the company’s view of the converging search and display marketplaces, would leave the company without an independent search business that it views as critical to its strategic future and would not be in the best interests of Yahoo! stockholders.’

I guess this time it is for real, and it’s not a way to profit and/or gain play time since Yahoo!’s stocks have fallen dramatically, 13%, after ending talks with Microsoft. Yahoo! declared it intends to preserve its search business nature and not link it to the tech mogul, for it would defeat its purpose and would trigger Yahoo!’s future strategic growth, as well as, clash with stockholder interests.

However, this whole merging revolt did raise a new ‘possible’ deal between Yahoo! and Google, which we know came about after the test run of the Google ad system, that occurred earlier in the season; which in the end resulted very positive for both companies.

Now they’ve partnered up for search technology where Google will serve as a full-time AdSense advertiser for Yahoo!’s search pages and all other services.

Note: Yahoo! is not giving in to Google, it will continue its search functionality and remain king of its castle. Scott Fulton from BetaNews gives us all the juice on his post, ‘Google, Yahoo make the deal: AdSense on Yahoo Search.’ Basically, the way it works is, advertisers pay Yahoo! for clicks on search results within the Yahoo! network, while advertisers whose results on Google appear on the Yahoo! owned network, will have to pay Google directly.

This entry was posted on Friday, June 13th, 2008 at 3:39 pm and is filed under Media News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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