Wednesday, April 09, 2008

Google and Yahoo Learn to Share

"Yahoo and Google, the world's two biggest search engines, have announced a two week experiment that will see them share advertising space.

During the pilot, Google will be able to place ads alongside 3% of search results on Yahoo's website.

Analysts say the move is designed to frustrate Microsoft, which has offered to buy Yahoo for $44.6bn (£22.6bn), or extract a higher offer.

Microsoft said any lasting deal would not be in the consumers' interests."

Microsoft seem to be really sweating it out. Yahoo is doing everything it can to make sure it gets a higher price for it's shareholders. And it seems to be working. Microsoft has no other choice but to increase their bid to gain ownership of Yahoo.

Microsoft wants to buy Yahoo to increase it's web presence and dive into the online advertising industry. Yahoo has made it very clear that if Microsoft tries to play hard ball and back Yahoo into a corner, Yahoo will turn to Google giving even more of an advantage to the search engine giant.

It's a delicate dance, but I think Yahoo has the upper hand. They will get a higher price for their shareholders.