Real-Time Quote
US News
Page 1 of 4 | Next Page
Show Entire Article

Google-Yahoo Deal Not So Far-Fetched
The Street | October 25, 2011 | 12:33 PM EDT

Over the weekend it was leaked that Google was interested in helping at least a couple of private equity players to finance a purchase of Yahoo.

Most folks have protested loudly against this possibility by concluding that such a deal would never get past the U.S. government.

Google , with already two-thirds of the market share of the search space, would significantly increase that by taking over Yahoo's share and leaving the rest of the market to Bing, Ask Jeeves, and whatever else is left.

Of course, that is right.

Google previously tried to strike a deal with Yahoo after the 2008 Microsoft buyout was pulled and before Carol Bartz signed up to outsource Yahoo's search to Bing. That potential tie-up between Google and Yahoo was discouraged by the government.

So why is Google leaking this information now? These are smart guys. They know that search is a non-starter.

One cynical theory is that they have no interest in Yahoo at all.

They're merely trying to seem interested so Microsoft will be forced to more aggressively bid for Yahoo. With a company that bid "pi" for the Nortel patents before Apple and a consortium of others won them, I suppose anything is possible.

However, I just don't see what the point is for Google to do this.

Page 1 of 4 | Next Page
Show Entire Article
Real-Time Quote
omniture pixel