Yahoo and MS have joined their hands to let down the market of Google in search engine because Google is the biggest search engine in the world. Just before this, Microsoft wants to acquire yahoo and the bidding was approximately 48 billion dollar. They have decided that now Microsoft will manage Yahoo’s search engine and Yahoo will manage Microsoft ads.
This weekend, Carl Icahn, the activist investor had turned up the heat on Yahoo because the internet company closes in on deal with Microsoft. There had been the important discussions between Yahoo and MS over a deal regarding to compete with the world’s biggest search engine, Google. In these discussions, they are making plan that very soon, Microsoft would handle or run Yahoo’s search engine and Yahoo would handle online advertising for Microsoft. According to the sources this week, when both partners are due to release quarterly results, a tie up could be announced. And it is also expected that Yahoo would take a share of Microsoft’s advertising income and would be paid $ 3 billion upfront.
Icahn, who owns 5% stake in Yahoo and joined the board last year said that he have been a strong advocate of getting a search deal done with Microsoft. After Microsoft’s $47.5 billion takeover of Yahoo foundered, the investor had tried to bring the two sides back together last year.
After the takeover collapsed, Jerry Yang, Yahoo founder has been replaced by Carol Bartz as chief executive, who talks with Microsoft boss Steve Ballmer and said it would enhance value if a deal got done because of the synergies involved. According to the sources, Icahn has a strong track record in forcing companies to act.
It is absolutely true that Google remains the best search engine in the world, with 65% of American market. Microsoft in third with 8.4% and Yahoo lag with 20%. So, now see whether the tie up of both these companies would be successful or not, just WAIT AND WATCH!!