Yahoo, Microsoft Deal Dead

Search deal with Google expected

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Yahoo said today that negotiations with Microsoft on a partnership or other type of deal have ended without any agreement.

Yahoo said in a statement,"Microsoft representatives stated unequivocally that Microsoft is not interested in pursuing an acquisition of all of Yahoo!, even at the price range it had previously suggested."

Sources familiar with the matter said that Yahoo is close to reaching a search deal with Google, according to the Wall Street Journal. In April, Yahoo and Google entered into a two-week test deal for Yahoo to deliver AdSense for search advertising.

Yahoo said the proposal by Microsoft to purchase Yahoo’s search business "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."

Yahoo shares were down 10 percent on the news that a Microsoft deal had been permanently tabled falling to $23.50.

An announcement about a Google and Yahoo search deal could come as early as today.

Yahoo, Microsoft Deal Dead
Top Rated White Papers and Resources
  • http://www.crearedesign.co.uk Adam – Creare Web Design

    A Yahoo-Google search deal will be quite a blow to Microsoft’s live search. It looks like Microsoft’s stubbornness in not wanting to share any of its searching  strategies could end up hurting them even more.

  • http://www.silverandstone.com Em

    Whew!  That’s a relief.  I have two sites hosted by Yahoo and was unhappily contemplating the hassle of having to move both domains elsewhere.  If Microsoft had succeeded in taking over, I would have  packed my virtual bags and gotten out of Dodge.

  • Gene

    Could this be the beginning of GooHoo, or is it Yagoo?

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