Yahoo-Microsoft deal 'no longer a possibility'

Category: Online marketing

June 13th 08, 10:37

Hopes among Yahoo!'s shareholder base of a Microsoft acquisition dwindled this week as the search pioneer announced a new search ad deal with Google.

Microsoft and Yahoo! both acknowledged that a full takeover was no longer being discussed, while the latter revealed that it is to let Google place ads next to its search results.

Yahoo!'s director of communities and communications, Brad Garlinghouse, told the BBC this week that the company was looking to the future with a portfolio of new social media initiatives.

According to Reuters, Google views the deal as an $800 million (£410 million) revenue opportunity.

"Google has made an enormous gain strategically. This move might well have shut Microsoft out of the online space altogether," Sanford Bernstein analyst Jeffrey Lindsay told the news provider.

Shares in Yahoo! have fallen by ten per cent since the news emerged that talks with Microsoft had reached a dead end.

This news story was brought to you by Bluhalo, a leading UK digital agency.

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