Skip Links

Network World

  • Social Web 
  • Email 
  • Close

Yahoo buddies up with Google in effort to boost value, thwart Microsoft

Yahoo will test Google's AdSense for Search service
By John Fontana , Network World , 04/09/2008

Facing a hostile takeover by Microsoft, Yahoo Wednesday said it will begin a limited test of Google AdSense for Search service in a bid to maximize stockholder value.

The test of AdSense will deliver Google ads alongside Yahoo’s search results, according to a statement from the company.

The test is slated to last up to two weeks but will be limited to no more than 3% of Yahoo’s search queries on yahoo.com in the United States only.

Yahoo specifically said the test does not “necessarily mean that Yahoo will join the AdSense for Search program or that any further commercial relationship with Google will result.”

The move is a direct attack on Microsoft’s $44.6 billion bid to take over the company and its most recent threat of a hostile takeover.

In February, Yahoo rejected Microsoft’s takeover bid, which just this past weekend deteriorated into a back-and-forth letter writing campaign between Microsoft CEO Steve Ballmer and Yahoo CEO Jerry Yang.

Yahoo faces a three-week deadline issued by Ballmer in a letter to Yahoo on Saturday to agree to Microsoft’s offer or risk having the bid lowered and Microsoft launching a proxy battle to take over the company.

“This could potentially derail the Microsoft deal,'” Sanford C. Bernstein analyst Jerry Lindsay told the Bloomberg News Service. “It would be a way Yahoo could build its stock price back up.”

Microsoft reacted swiftly with a statement from Brad Smith, the company’s general counsel.

“Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”

Partner Content
CA logo

CA Network & Voice Resource Center

Comprehensive Network & Voice Management Visit CA Network & Voice Management Resource Center and get insights into industry best practices, information that helps you to address your challenges.

CA Network & Voice Management Resource Center

whitepaper

Managing Voice Over IP for Successful Convergence

Voice over IP (VoIP) has much to offer in cost savings but some customers have concerns about VoIP call quality compared to the quality of traditional voice services. This white paper will help you learn how to take the right steps so that voice quality is assured.

Managing VoIP for Successful Convergence

whitepaper

The Changing Face of Network Management

Managing your network is serious business. This paper discusses the benefits of integrating configuration change-awareness into your network fault management solution

Download Whitepaper

Comments (1)
Login
Forgot your account info?

Ultimate irony: Microsoft cries "monoply" in replyBy Microsoft Subnet on April 9, 2008, 6:17 pmMicrosoft has already issued a statement about this deal declaring that if Yahoo joins with Google this would constitute a monopoly. How ironic is that? Vote your...

Reply | Read entire comment

View all comments

Add comment
Anonymous comments subject to approval. Register here for member benefits.
Have a NetworkWorld account? Log in here. Register now for a free account.

Videos

rssRss Feed

Whitepapers

Sun Microsystems: The Green Tide Is Coming. Pressure Builds for an Energy-Efficient Data Center

It's safe to say that most companies, if presented with hard numbers on their energy consumption...

Secure Wireless Printing Options

Discover how you can reduce the TCO of your wireless printers in this whitepaper. Learn how to...

Tuning ERP and the Supply Chain for Profitable Growth

The supply chain is, of course, the primary processing mechanism of every manufacturing company....

Webcasts

Direct from Microsoft: Tips for Integrating Exchange 2007 and Double-Take Software

Double-Take (r) Software and Microsoft are teaming up on September 9, 2008 for a webinar focusing...

PoE Plus: Impact on the PoE Market

The standard for Power over Ethernet (PoE), IEEE Std. 802.3af(tm)-2003, advanced networking,...

Harnessing the power of communications to increase workplace performance

Due to the convergence of IT and telecommunications technologies, the business workplace has been...

Special Reports

The New Network/System Management Challenges

Increasingly popular technologies such as virtualization, wireless networking and data center...

Virtualization Reality Check

Find out why analysts say approaching virtualization with an ounce of caution is wise. And also why...

Closing the Loop: Extending Wireless LAN Security to Wireless Printers

Enterprises cannot overlook wireless printers when assessing network security. The print jobs and...

Get instant email notification when white papers, webcasts, executive guides are added to our library. Stay informed and up-to-date with the latest on IT Technologies with Network World's Resource Alerts.