Yahoo! Uses Google As Leverage

A few months ago, the hot topic across the Internet was Microsoft’s bid against Yahoo! If you can recall, Yahoo! rejected Microsoft’s initial offer based on the assessment that the amount is “undervalued”. Given the three-week deadline, you’d think that Yahoo! would feel threatened by now. Well, it just threw a curve ball at Microsoft by going to one of its rivals. In an effort to raise its value, Yahoo! is going to use Google for its ads.

The two-week test with Web search leader Google would involve Yahoo targeting Google Web search advertisements at 3 percent of the users of Yahoo’s own search services. Brokerage Sanford C. Bernstein has estimated that by turning over all search ads to Google, Yahoo could boost revenue by 10 percent.

Investors view the move as a last ditch effort from Yahoo!. It’s stock rose 7 cents to $27.77 USD as a result of the news. At this point, it might as well be waving the white flag. It’s not a matter of saving the company anymore.

Source: IT News

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