Yahoo Inc. and Microsoft Corp. hope that by joining forces, they can tilt the balance of power in Internet search away from Google Inc. First, however, Yahoo and Microsoft have to convince regulators that their plan won't hurt online advertisers and consumers.
The Internet search partnership between Microsoft and Yahoo faces a tough antitrust review in the U.S. and overseas, with approval likely hinging on whether the marriage would foster more competition with market leader Google.
Consumers would see improved Web search efforts by all major players as a result of a proposed search partnership between Microsoft and Yahoo, experts say.
A chronology of key events leading to Microsoft Corp.'s deal with rival Yahoo Inc.:
Microsoft finally persuaded Yahoo to surrender control of the Internet's second most popular search engine and join it in a daunting battle — taking on the overwhelming dominance of Google in the online advertising market.
Microsoft Corp. appears to have finally persuaded Yahoo Inc. that together they would have a better chance of mounting a meaningful challenge to Google Inc.'s dominance of online advertising.
Sure, things look rough for Yahoo Inc. and Microsoft Corp. after they couldn't agree on a deal. Yahoo's stock has cratered, and its would-be suitor has to figure out another way to catch up in the online ad market, a flaw so big Microsoft was willing to pay $47.5 billion to fix it.
Just how serious was Microsoft Corp. about raising its bid to $47.5 billion for slumping Internet pioneer Yahoo Inc.?
Yahoo Inc.'s rejection of Microsoft Corp.'s unsolicited takeover bid left investors guessing the next move in a tense mating dance that may hatch a more imposing challenger to Google Inc. or disintegrate into a bruising brawl.
Yahoo Inc.'s board will reject Microsoft Corp.'s $44.6 billion takeover bid after concluding the unsolicited offer undervalues the slumping Internet pioneer, a person familiar with the situation said Saturday.
Yahoo Inc.'s board reportedly held a special meeting Friday to discuss how to handle the slumping Internet pioneer's first response to Microsoft Corp.'s week-old takeover bid, setting the stage for either a quick resolution or months of acrimonious wrangling.
Yahoo Inc.'s board reportedly called a special meeting Friday to discuss the slumping Internet pioneer's first response to Microsoft Corp.'s week-old takeover bid, setting the stage for a quick resolution or months of acrimonious wrangling.
Microsoft's unsolicited bid for Yahoo underscores the strength of online advertising — and the confidence the market has that the relatively new industry can withstand an economic downturn.
Add a House panel to the list of lawmakers lining up to examine the Microsoft-Yahoo deal.
Google's effort to raise antitrust concerns about Microsoft's $42 billion bid for Yahoo has several flaws, analysts said.
Microsoft Corp.'s $41 billion takeover bid appears to have backed Yahoo Inc. into a corner, leaving the struggling Internet pioneer with the unpleasant choice of selling to a detested rival or pursuing other agonizing alternatives likely to require the help of an even fiercer foe, Google Inc.
Yahoo's walls are awash in bright purples and yellows, while Microsoft's campus is coated in drab neutrals. Yahoo's co-founder holds the cutesy title of "chief Yahoo," while Bill Gates was "chief software architect."
A combination of Microsoft and Yahoo could reshape the Internet landscape for millions of Web users: Would the two companies join their online portals? Could they rethink the desktop computer to integrate Web content more directly?
How Microsoft, Yahoo and Google's businesses, including their online advertising operations, stack up:
Time Warner Inc. has been trying to figure out what to do with its struggling AOL unit for a few years now. A potential combination of Microsoft Corp. and Yahoo Inc. could put even more pressure on the media conglomerate to take action.
U.S. and European antitrust regulators aren't likely to prevent Microsoft from buying Yahoo, analysts said Friday, though scrutiny of the deal could drag on for months.
Speculation about a possible Microsoft-Yahoo tie-up met with skepticism Friday from analysts as reports that the deal was already dead began to surface. The reported takeover talks that sent shares of Yahoo Inc. up by 10 percent Friday were no longer taking place, the Wall Street Journal said in an online article citing sources familiar with the negotiations.
For the meantime at least, it appears that Microsoft is the one gaining from its search deal with Yahoo! Microsoft's share price has risen just over 1.41% to $23.80 per share, adding $2.94 billion to their market cap.
Microsoft's recently revamped search engine, Bing, has entered Alexa's Top 500 Global Sites at Number 5 - as Windows Live.
Microsoft's hostile-takeover attempt against Yahoo may encounter an unexpected hurdle in August after a Chinese anti-monopoly law that will extend the nation's economic influence far beyond its borders takes effect.
Yahoo chief executive Jerry Yang knew exactly what was on everyone's minds at the Interactive Advertising Bureau conference on Monday.
US internet company AOL has become the latest firm to hold talks with Yahoo about a possible deal to fend off an approach from Microsoft, a report says.
Microsoft's $31 a share offer for Yahoo is made possible by Yahoo's slumping shares (Yahoo's stock was trading at about $31 a year ago).