Feeds

US Senate to probe Goo-Hoo!

Fear not. Escape hatch in place

Designing a Defense for Mobile Applications

The US Senate's Antitrust Subcommittee will investigate Yahoo!'s Ballmer-battling search tie-up with Google.

Yesterday, as Jerry Yang and company announced the death of talks with Microsoft, Google officially told the world it plans on serving ads to Yahoo!'s search engine in the US and Canada. And this sparked a a few words from Senator Herb Kohl, head of the Antitrust Subcommittee.

"We will closely examine the joint venture between Google and Yahoo announced today," his statement read. "This collaboration between two technology giants and direct competitors for Internet advertising and search services raises important competition concerns.

"The consequences for advertisers and consumers could be far-reaching and warrant careful review, and we plan to investigate the competitive and privacy implications of this deal further in the Antitrust Subcommittee."

Of course, this is hardly surprising. And the AntiSubCommittee isn't the only one probing. But Google says it has things covered. "We have been in contact with regulators about this arrangement, and we expect to work closely with them to answer their questions about the transaction," the said company yesterday. "Ultimately we believe that the efficiencies of this agreement will help preserve competition."

Even if regulators do approve the deal, it may not last. As eWeek noticed, Google slipped an escape clause into the agreement. If revenues fail to reach about $83m over a four month period, says a brand new SEC filing from Yahoo!, Google can bail after 10 months.

Google can also bag the agreement if Yahoo! fails to maintain at least 50 per cent of the company's voting power - and that number jumps to 65 per cent in the event of a transaction with Microsoft, Time Warner, or News. Corp. If Yahoo! ownership changes hands over the next two years and the deal is terminated, it must fork over $250m to Larry and Serg - minus a few million here or there, depending on how successful the tie-up was.

As Bloomberg reports, the money-minded folk at Merrill Lynch estimate that Google will make an extra 15 cents a share on this Yahoo! pact over the next year.

If regulators give the OK. ®

Application security programs and practises

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
MPs wave through Blighty's 'EMERGENCY' surveillance laws
Only 49 politcos voted against DRIP bill
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.