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Yahoo shares yo-yo as Microsoft walks away.
Byline: caldwell
Yahoo shares yo-yo as Microsoft walks away
Tracey Caldwell
Yahoo's on-off relationship with Microsoft is said to be finally off after the search firm jumped into bed with Google, signing a deal to allow Google to sell advertisements on some of its search results. However, speculation is still rife, with share prices rising and falling 10% on 24 June as rumours took hold that Microsoft had reopened discussions.
Shares in Yahoo fell after talks with Microsoft ended. Microsoft had originally offered to buy Yahoo for more than $46bn. Google cried foul, citing monopoly concerns. Now that Google has struck a deal with Yahoo, Microsoft is returning the compliment and monopoly investigations will likely delay any deal for some time.
Untangling the implications for the future of search is proving tricky on these shifting sands.
Outsell analyst Ned May said the deal with Google would benefit Yahoo, despite the widespread criticism of Yahoo's decisions.
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