According to a story just out in the Wall Street Journal, Google has met with at least private equity firms about potentially helping them finance a deal to buy Yahoo.
Of course this would deal would get a good look over by the Feds.
However, as Scott Cleland the author of the book “Dark Side of Google” stated at the TRAFFIC conference this past week, the Feds ultimately allowed Google’s purchase of Doubleclick and Admob.
Mr. Cleland said about those acquisitions by Google:
“Both administrations, the Bush and the Obama administration completely blew it by approving the sale of DoubleClick and Admob”
“its game over”
“The government created a monopoly through there own ineptitude”
So although we all might at first blush say the Government will never allow that deal to go through, you never know and a Google spends a ton on Capital Hill lobbying every year
What it would mean to the domain industry?
It would have huge implications not just on PPC but of course on Search as well.
Yahoo is in the second year of a 10-year search partnership with Microsoft Corp. on Bing.com
Microsoft has also reportedly been in talks with private equity firms to purchase of Yahoo as well as the China Internet giant Alibaba.
Can we say antitrust lawsuit guaranteed?
as said, I think that the antitrust authorities NEVER can allow this deal, since Google+Yahoo may reach over 85% of SE market share in a day
Well again we all think that but Google isn’t stupid and they know that too.
Yet they seem to be spending time and money to explore this path.
and in 2012 Microsoft will sell Bing to Google for $1 as I’ve predicted in May 30, 2009 here:
newgoos.blogspot.com/2009/05/why-bing-will-be-sold-for-1-in-2012.html
“Well again we all think that but Google isn’t stupid and they know that too.”
probably the Google’s only goal is to boost up the Yahoo price to $25-30 billion and increase the bleeding of Microsoft’s cash reserve
Certainly possible
Maybe they just want to drive the price up of the sale for any potential buyers so as to put them out of more cash.
There’s a competitive advantage in that obviously.
“probably the Google’s only goal is to boost up the Yahoo price to $25-30 billion and increase the bleeding of Microsoft’s cash reserve”
I agree with that.
Or a fake move.
Let the market believe the big guy is interested in their competitor…then pull away, leaving the market now believing the big guy knows something negative about them (competitor) that was hidden. Strengthens them – weakens the competitor.
but, if Google buys Yahoo, in 2012 also Microsoft will sell Bing to Google for $1 as I’ve predicted in May 30, 2009 here: newgoos . blogspot . c o m /2009/05/why-bing-will-be-sold-for-1-in-2012 . h t m l
Just when you think something can’t happen, it does.
Google can certainly afford the best politicians money can buy.
Then again, so can Apple. Maybe they will toss their hat into the ring.
but Apple has 5+ times the Google cash
while, MS loses $4 billion per year with Bing
What I don’t understand is why GOOG would have to meet with Private Equity firms to finance a deal. They have twice Yahoo’s total market cap in cash, my guess is that they could probably issue their own debt cheaper.
I’d buy a Google bond paying me a decent yield (although I don’t think they should actually buy Yahoo)
Just sayin’
(OTOH maybe this is just a ploy to lure microsoft into a bidding war to get them to pay some stupid multiple for them.)
Microsoft does not need a lot of help burning cash in their internet division. To date they have lost over $9billion http://bit.ly/nxlKfP
Google buying Yahoo makes sense to me on a lot of levels but they could also just let them wither. Or let MSFT buy Yahoo and watch the process accelerate.
It’s all pretty amazing when you think about it.
It is only money….when they have so much money, it means nothing.
Chances are you and I don’t see the money, it is just one click away.
Interesting strategy.
i think alibaba is 40% owned by yahoo and is essentially yahoo china. that may be why alibaba was interested in possibly buying out yahoo.
This obviously faces major antitrust issues, and if this deal is allowed to go through the government is not doing it’s job.
The end result is always the same from these type of deals that consolidate power – the consumer loses.
Brad
Hard to imagine a Republican administration permitting such a combination, much less a d
Democratic one — especially while the FTC has an ongoing antitrust investigation in progress re: Google.
While Google may be the leading search engine, advertising is its overwhelming source of revenue.
So I agree with those who think that another game is afoot.
“Hard to imagine a Republican administration…”
and don’t forget the antitrust authorities of the rest of the world
They wouldn’t be after the whole of yahoo. They’d be after content division rather than search to boost up google+
Michael –
“Of course this would deal would get a good look over by the Feds.”
Google biggest or future competitor is facebook, groupon, ebay and maybe a resurected MySpace and every other other “next whim” – not yahoo – this means they are posturing for the deal to happen – only if they want it to happen – and without the Gestapo involved.
Another reason why we should suport Franks great InternetTraffic.com deal with Google – beyond the extra money it put in our pockets. Brokering a huge collection of legit portfolios is going to get real ugly with lots more competitors the google – the writing is on the wall – google knows they are not the only player anymore.
Orchestrated VC spin to manipulate the price- said one commenter “What amazes me, is after Yahoo being told what to do from so many people, that the brand becomes less and less known for what it wants to be known for, and is instead defined by the market, Yahoo is now the whipping boy of the internet. Why is this continuing to happen? Is there that HUGE of a disconnect with reality?
If I were running Yahoo I’d split it off into several divisions BEFORE SOMEBODY ELSE does. Revenue generators take precedence.
Yahoo, DDDDecide on what makes MMMMMmoney, keep that, yes, … and the rest, either spin it off, or shut it off, plain and simple. Move on.
Check Out How Private Equity Is Using The Wall Street Journal To Try To Drive Yahoo’s Price Down http://www.businessinsider.com/yahoo-buyout-price-2011-10?utm_source=twbutton&utm_medium=social&utm_campaign=sai via @sai
What are the possible chances that Google will buy Yahoo ?
“What are the possible chances that Google will buy Yahoo ?”
zero, if Google does not wnat to be sliced with a Katana by worldwide antitrusts 🙂
This would be a huge loss and setback for internet users. Yahoo is probably the best news/information aggregator out there. They do some things better than anyone else.
Another take on this which says its possible
http://www.thestreet.com/story/11286826/1/google-yahoo-deal-not-so-far-fetched.html?
I just want to know, if Google will possibly be able to buy and own Yahoo, what will happen to Yahoo! emails?
YES, and you will loose your mails cuz All Your Mails Belong To Us!
So far yet, no news on Google Buying Yahoo. Will they ever do? Especially when Yahoo is running into losses now and firing some of their employees.