Yahoo back in the game

By Scott Moritz

Yahoo (YHOO) moves back to the deal market as its controversial advertising partnership with Google (GOOG) is now dead.

As Fortune’s Legal Pad blogger Roger Parloff outlined last month, the legal footing was never very solid as the No.1 and No.2 Internet advertisers explored plans to work together on search advertising efforts.

The plan was first introduced in June as Yahoo was trying to fend off an unsolicited takeover bid from Microsoft (MSFT). Yahoo stubbornly resisted Microsoft’s early offers, including a $33-a-share bid in May. Microsoft then walked away and in July, activist investors like Carl Icahn started pushing for a shakeup of the Yahoo board and a more deal-friendly line up.

Yahoo shares, which had fallen to a five-year low of $11.25 last month, surge up 9% on Wednesday after news that the Google partnership was killed.

Investors apparently like Yahoo’s options a lot better without the antitrust battle that seemed to be looming with its Google ad plan. Microsoft and Time Warner’s (TWX) AOL unit – Time Warner is the parent of Fortune and CNNMoney – are among the potential deal partners.

On a conference call with analysts, Time Warner executives said that the news was positive for AOL. “The opportunity remains open for this business to rebuild itself,” the executives said.

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Filed under Advertising, Facebook, Google, Internet, Microsoft-Yahoo, Yahoo, microsoft

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jerry yang and his yes men should be ashamed of managing to be one of the worse CEO’s in the history of man. The amount of money he lost for his bosses (shareholders) who were offered real money by Microsoft and instead are all in the poor house today. What a bloody mockery he is. He should be sued. It also shows what the joker thiefs are at Goldman and the ex Lehman who charged 35 Million for giving Jerry “the Einstein” Yang great advice-”you are worth much more than $33 per share (today $11-$14). The whole financial sector are charlatans and we have to suffer

Posted By jeff, NY : November 5, 2008 2:35 pm

to somewhere,us: just for the record, i dont appreciate all the capitalization in your message as it makes for difficult reading. you should know by now that i never capitalize. i’m probably troubled more by your lack of grammatical skills and i’m surprised that we’ve hired someone whose wife is obviously illiterate. anyway, to the point – there will be many more layoffs to come, especially with non-technical staff. we’re trying to fight off that 800-pound gorilla, google – oops, i meant microsoft, and i don’t care how many of my employees and shareholders i take down with me. at least sue never disagrees with me.

Posted By Jerry Yang, San Jose, CA : November 5, 2008 2:28 pm

Why is this a surprise? 80% market share was always going to be a problem. Look at this development as an opportunity to profit from yahoo by buying shares or options on the chance of a potential takeover as discussed recently. Just look at what the market and investors are saying and the stock price reaction (up). Yahoo’s days as an independent company are running out.

Posted By Andy, Washington DC : November 5, 2008 1:56 pm

Now Jerry nice my husband is the major BREADWINNNER WHY DON’T YOU DO SOMETHING NO CO HAS NEVER THE LAYOFFS…JUST THINKWHAT A MAJOR “PR MOVE” THAT WOULD BE FOR YOU NOW…JUST WHEN COMPANY MORALE IS DOWN AND NOBODY KNOWS IF THEY ARE ONE OF THE UNFORTUNATE TO GET A PINK SLIP.JERRY WHAT A MOVE THAT WOULD BE FOR YOU!!!!!AND YOU DIDN’T EVEN HAVE TO PAY AN OUTSIDE SOURCE FOR THAT ADVICE.REMEMBER ALL YOUR EMPLOYEES AREN’T TECKIES AND THE ONES WHO AREN’T ARE GOING TO HAVE A TERRIBLE TIME FINDING NEW EMPLOYMENT. TODAY GOOGLE AND MICROSOFT DOWN…..YAHOO UP WHO WOULD HAVE THOUGHT

Posted By somewhere,us : November 5, 2008 1:44 pm

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