Internet advertising giant Google had entered into a deal with Yahoo in an effort to keep it away from Microsoft. Microsoft wanted to buy Yahoo in an effort to boost its position on the Internet by biting into the huge advertisement market on the Internet. Microsoft had offered Yahoo a $47.5bn takeover which was rejected by the Yahoo board of directors.
Google backed off form this deal to avoid action from US Department of Justice. This arrangement between Yahoo and Google would resulted in a virtual monopoly over Internet marketing and hence action from the Justice Department.
This decision by Google has left Yahoo in cold. It would now have to look to Microsoft once again but this time it may not get the previous price. It will have to settle for much less.
Internet advertising giant Google had entered into a deal with Yahoo in an effort to keep it away from Microsoft. Microsoft wanted to buy Yahoo in an effort to boost its position on the Internet by biting into the huge advertisement market on the Internet. Microsoft had offered Yahoo a $47.5bn takeover which was rejected by the Yahoo board of directors.
Google backed off form this deal to avoid action from US Department of Justice. This arrangement between Yahoo and Google would resulted in a virtual monopoly over Internet marketing and hence action from the Justice Department.
This decision by Google has left Yahoo in cold. It would now have to look to Microsoft once again but this time it may not get the previous price. It will have to settle for much less.
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