Finally Yahoo decided to cave in and has decided to partner with Google to display relevant alongside its search results in the US and Canada. This surely is the beginning of the end of the ambitious Panama project.
If you remember Yahoo had announced a similar deal a couple of months back that was more of a test to see the returns from the ads by Google. From what I’ve heard, Yahoo was extremely satisfied with the returns and that’s why this deal is happening today.
Yahoo has spent a lot on Panama, the advertising platform that was built to compete with Google Adwords. But somehow Google managed to stay on, and Yahoo has seen less ad dollars compared to Google on its search advertising front.
You can read the Google blog post about the deal, but here is the main gist of the deal.
Finally it looks like Steve Ballmer and his team found too much of trouble running behind Yahoo for the past three months. Microsoft considers Yahoo to be its golden goose, and it feels that it will lay golden eggs in the future of online advertising.. I had written a post detailing What A Combined Microsoft Yahoo Looks Like weighing all the pros and cons if this deal went through. Somehow Yahoo managed to push Microsoft to such an extent that it had no choice but to accept defeat.
Now that Yahoo is staying on as an independent company, Jerry Yang and his team have some important tasks at hand. Let me reserve what exactly do they need to do for another post and focus on the ramifications of the breakout of this deal.
Microsoft issued a statement here
‘Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal,’ said Ballmer.
photo credit: RossinaBossioB
Music sharing has been of the most common file sharing activities on the internet. There are many ways you could find the music you were looking for by using tools like Limewire, BitTorrent etc.. But most times nothing beats a Google search does it? Yes you heard that right.. Google may as well be your best friend if you are looking to find music freely on the Internet.
Just follow the instructions below, and you will be on your way to find the music that you otherwise won’t find on P2P networks. The hack simply involves the major search engines revealing their vast indexes to you so that you can find what you are looking for.
Hot on the heels of the 3days ultimatum given to Yahoo by Microsoft, Yahoo is doing everything it can to subvert the deal. Yesterday it acquired analytics startup Indextools and today it has announced a search advertising deal with Google.
Here’s the press release :
Yahoo! Inc. , a leading global Internet company, announced today that it will begin a limited test of Google Inc.’s AdSense for Search service, which will deliver relevant Google ads alongside Yahoo!’s own search results. The test will apply only to traffic from yahoo.com in the U.S. and will not include Yahoo!’s extended network of affiliate or premium publisher partners. The test is expected to last up to two weeks and will be limited to no more than 3% of Yahoo! search queries.
Looks like Yahoo has finally given up on Panama. A report from last year shows Google’s RPS (Revenue Per Search) at $25, versus $16 for Yahoo. So if the RPS has remained more or less the same for the past year, this deal could mean more cash in Yahoo’s registers. Google’s earning atleast 30% more than Yahoo, and considering that Yahoo’s major source of income is from advertising, this deal could help the company deliver a better than expected Q2 earnings call.
The Wall Street Journal believes that Yahoo! will decline the $44.6 Billion Offer made by Microsoft to acquire it tomorrow. Should this happen tomorrow, it might set some wildfires tomorrow, as this would probably be considered as a bold move by Yahoo.
Yahoo has said that it will not consider any offer made by Microsoft under 40$ a share. Over a series of meetings, the Yahoo board believes that this offer seriously undermines the true value of Yahoo. If at all Yahoo pushes for atleast 40$ a share, this would mean another 30% premium for Microsoft, taking the potential bid to about 60$ billion.
The timing of Microsoft’s Offer made one thing very clear and that was that it is trying to buy Yahoo for cheap. Looks like the Yahoo Board have decided to put up a bold face, and have decided to raise the bid price beyond the 40$ mark. Also the original Microsoft offer on February 1st has itself lost value, as the bid was half cash and half stock, and Microsoft’s Stock price has fallen nearly 13% in this period.