Seattle, WA (Marketsblog) – In the midst of a hostile takover bid from software giant Microsoft, Yahoo has pulled a few of its own strings to come up with a deal with Google that includes using Google ads on Yahoo’s search engine.
Although the current deal involves exposing Google ads to a mere 3 percent of search results on Yahoo, it might still be a ploy to increase Microsoft’s $31-a-share bid for the Internet search engine firm, say analysts. Despite those reports the Redmond, Seattle-based company insists that the bid is not gona go up. And this time Steve Ballmer is putting his foot down, saying he will go to Yahoo shareholders should the takeover-process get any messier!
The two-week long trial deal is also viewed as some as a precursor to more long-lasting signings between the two firms.
BizJournal quoted Microsoft attorney Brad Smith as saying, the agreement between Yahoo and Google could have significant consequences in that it could take over the entire search market.
"Any definite agreement between Yahoo! and Google would consolidate over 90 percent of the search advertising market in Google’s hands," Smith said in a statement.
At any rate Smith remained confident that a deal with Microsoft would be far more lucrative for Jerry Yang and his associates at Yahoo than one with Google which would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo!"
Smith continued to say, "Our proposal remains the only alternative put forward that offers Yahoo shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for creators, advertisers and consumers"