Yahoo ends talks with Microsoft, looks to Google

Bad news for Carl Icahn: Yahoo sent out a press release earlier today saying it has stopped all talks of a “potential transaction” with Microsoft, ruling out a merger between the two companies as well as a partial acquisition. The firms had been discussing a partnership other than an all-out buyout since May.

According to Yahoo, the talks ended after a meeting where “Microsoft representatives stated unequivocally that Microsoft is not interested in pursuing an acquisition of all of Yahoo!, even at the price range it had previously suggested.” Not so surprisingly, Yahoo shares plummeted from a high of $26.33 to $22.50 as the news broke, although they’ve since climbed back up to $23.52. The shares rocketed from $20 to almost $30 after Microsoft announced its first bid earlier this year.

Meanwhile, the rumor mill is teeming with whispers that Yahoo and Google are about to announce a search advertising partnership. Citing sources “familiar with the matter,” Reuters says Yahoo ended talks with Microsoft precisely because it came to an agreement with Google.

Comments closed
    • Spotpuff
    • 11 years ago

    Does anyone even use Yahoo anymore? I never used them and their homepage makes my eyes bleed.

    • Jambe
    • 11 years ago

    I wonder if they’ll buy Flickr? I want them to. That way I could use it with the other Google services (I fervently dislike Picasa).

    • zimpdagreene
    • 11 years ago

    Well Microsoft made a good move by not buying them.Would have cost them more trying to merge them together.

      • henfactor
      • 11 years ago

      So true, (now I add extra words to be over the 10 character min.)

    • StashTheVampede
    • 11 years ago

    Signing the truth.

    Google’s ad reach is VERY good in the US, Canada and numerous parts of the world. It’s ad reach is NOT the same, everywhere. In Asia, Yahoo is still very dominant and Google’s share is simply not as strong.

    To be honest, Google is just whoring it out: selling ads to those who want a cut of it all. Google would also do the MSN/Live stuff, but MS is a bit .. against that experience.

    • Usacomp2k3
    • 11 years ago

    What in the world would Google have to gain from yahoo?

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