Barbarians at Yahoo’s “Gates”

Unless your head’s been in the sand for the past week, you’ve probably heard by now that Microsoft has made an unsolicited offer to buy out Yahoo for $45 Billion.  You’ve also probably heard that Google has proposed an unholy alliance with Yahoo to save it from being swallowed.

It all started just over 7 months ago when Jerry Yang decided to get back at the helm and run the company he founded in the mid nineties, needless to say, things didn’t go as anticipated.

Steps in Google…

Google has masterfully capitalised on this hidden opportunity by lobbying against MSN’s offer and claiming potential anti trust issues. 

To add salt to injury, Google has also proposed an alliance with Yahoo that could keep it independent and out of the hands of MicroSoft.  The deal broadly presents Yahoo with an opportunity to add 25% more cash to its income statement by handing over its advertising platform to Google in return for a very “lucrative fee”.

No matter how things pan out, the next 12 to 18 months will be very interesting indeed!  Stay tuned…