AP
Yahoo seeks Google’s aid after Microsoft talks die
Friday June 13, 2:54 am ET
By Michael Liedtke, AP Business Writer 
Yahoo hoping Google’s superior technology will make shareholders forget Microsoft’s bid

SAN FRANCISCO (AP) — Yahoo Inc. became Microsoft Corp.’s takeover prey largely because Google Inc. established such a commanding lead in the Internet’s lucrative search advertising market.
But after eluding Microsoft’s grasp, Yahoo is now turning to Google to help squelch a rebellion among its shareholders who believe it should have accepted Microsoft’s $47.5 billion buyout offer while it was still available last month.
 
Yahoo announced its decision to let Google handle some of its advertising sales late Thursday, just a few hours after revealing it unsuccessfully tried to persuade Microsoft to renew its previous offer of $33 per share. The snub caused Yahoo to conclude that there is no hope for any kind of deal with Microsoft.

Although Yahoo believes Google could help boost its annual revenue by $800 million, the advertising partnership wasn’t enough to ease the disappointment of investors who had been holding out hope for a Microsoft deal.

Yahoo shares plunged $2.63, or 10.1 percent, to finish Thursday at $23.52 and shed another seven cents after the market closed.

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    So Yahoo has flubbed any hope of turning the company around. I don’t own any Yahoo stock but for Jerry Yang to not sell to Microsoft because its Microsoft seems childish. And the market seems to share this settlement as Yahoo’s stock dropped another 2 points. The issue with Yahoo is that none of their businesses our unique and they compete with companies that are bigger and stronger. I don’t care what happens to them either way, but I will continue to watch for sport.