Feeds

Potential suitors throw Yahoo! to the wolf

Forrester eats its research

Build a business case: developing custom apps

Yahoo! can marry Microsoft or remain an old maid with a less than rosy financial outlook. Those are the options. And we're being kind including one of them.

In the wake of Microsoft's $44.6bn bid for the struggling web giant, many asked whether other mega corporations might jump in with their own bids. In fact, the issue was raised during the conference call where Steve Ballmer and company discussed their jaw-dropping offer with industry analysts, and even Microsoft general counsel Brad Smith said "Obviously, any number of companies might have an interest."

But just days later, most of the potential suitors have fallen by the wayside. Yesterday, during his company's latest earnings call, News Corp. chairman and chief executive Rupert Murdoch said he was uninterested in Yahoo!, and The San Francisco Chronicle reports that media giants Comcast and NBC Universal have said eh-eh as well.

Well, there's one corporate behemoth who's at least interested in partnering with Yahoo! in an effort to fend off a Microsoft takeover. But that corporate behemoth is Google.

"As I said, any number of companies might take an interest," Brad Smith continued during that Microsoft call. "I think there's really one company that cannot. That's Google itself. Given that Google has roughly a 75 per cent market share worldwide for online paid search they are not in a position to do this. Given its super dominant market share, Google is clearly prevented by the antitrust laws from buying Yahoo! or buying this business from Yahoo!"

For once, we agree with Mr. Smith. And we'd go even farther to say that even a Yahoo!-Google partnership would ring those anti-trust alarms.

The fact of the matter is that Microsoft is the only company with the dough and the inclination to acquire the Yahooligans. Jerry Yang's only other option is to keep Yahoo! an independent company, and that's a long shot at best, considering the deal Steve Ballmer has waved at Yahoo! shareholders. As The Wall Street Journal reports, Yang's best - and perhaps only - option is "to play hard to get," hoping for a few extra billion. ®

Bootnote

On his blog Rough Type, tech-minded author, speaker, and friend of The Reg Nicholas Carr says that he opened up his email client to find a note trumpeting the latest reports from Forrester Research. One of these reports - issued on January 31, a day before Microsoft announced its bid for Yahoo! - was called "Microsoft Will Make Small Acquisitions: Its Size, Visibility To Antitrust Bodies, And Strategy Rule Out Big Deals."

Analysts? Gotta love them.

The essential guide to IT transformation

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?