Yahoo-Microsoft Update
by Galwin ~ April 11th, 2008. Filed under: Technology.The Microsoft proposed takeover of Yahoo! may get quite more complicated. There are some hints that Yahoo! doesn’t want any part of Microsoft.
Yesterday, Yahoo! announced that it will test Google advertising on about 3 percent of the queries that will be made in the United States through Yahoo! search engine. It is a two-week test that could lead to a broader partnership.
Microsoft stayed firm to its initial bid of $44.6 billion takeover of Sunnyvale-based company while Yahoo! insists that their company is worth more than that amount.
Is Google working behind the scenes to stop the Microsoft-Google deal?
According to some news, the prospect of breaking up the company has spread but executives at a rival companies are less optimistic the the 44.6 billion dollars price is realistically unachievable even if Yahoo split itself to a dozen pieces.
While companies jump into a war for the takeover, a Yahoo shareholder doubled its stake in the company. The largest institutional investor of Yahoo, Capital World Investors, disclosed in a regulatory filing Thursday that it increased its stake in Yahoo from 5.2% of shares to 10.1%. In an approximate, Capital World Investors, a unit of Capital Research and Management, now owns 135.5 million Yahoo shares.
The investment firm may be assuming that Microsoft or any company that will make an offer to takeover Yahoo will raise the offer to more than 44.6 billion dollars, the initial offer of Microsoft.
According to comShare, a combined Microsoft and Yahoo will have a combined 31 percent market share in the United States. That is way far behind the 59 percent share of Google.
