Google to Buy Yahoo?

I read this first over at the Pepperjam blog actually, Steve Ballmer (CEO Microsoft) canceled his bid on Yahoo. If I remember correctly the bid was somewhere around $44 billion. The Yahoo/MSN merge would have been an attempt to gang up on the monster we know as Google. Well not anymore.

Yahoo stock dropped from around $28 to $23 per share, and I’m no stock expert so I couldn’t tell you how much more it will drop. I think it was around $19 when MSN made the offer, and then spiked up close to $30 (again just going off what I heard). Kris predicted that Google would make a bid on Yahoo once the stock drops off more, and then Microsoft would battle it out with Google. Once again I’m no stock expert, but it seems like a smart thing to do would be buy a boatload of YHOO stock when it’s at a low, and once Google/Microsoft start a bidding war stock should spike back up and you could make a nice coin. I might throw some money into it myself after a little more research.

What if Google ended up winning Yahoo? How would that change our strategies as affiliate marketers? We all know Yahoo Search Marketing has been poorly trying to replicate the Adwords system for some time now. The new addition of minimum bids made it even more retarded and pathetic. I have sites that have Great QS in Google with $0.02 minimum bids, but they have like $0.67 minimum bids in Yahoo. Even taking that into consideration, would I want the two to become one? Probably not right now, Yahoo still does a lot of things stupid that you can take advantage of.

I’d just feel bad for poor MSN if this all happened, haha.


32 Comments

  1. May 5, 2008

    Ha ha, yeah, I don’t think that Microsoft may be done, could this all be a clever tactic to get shareholders pissed off and then have them complain about their lower stock price to get Yahoo to sell at the lower offer bids?

    Who knows at this point….

  2. May 5, 2008

    Yahoo thought they are more worth, but actually they are not! If Google bids on it, there would be too many lawsuits from people thinking that would be monopoly.

  3. May 5, 2008

    I think Microsoft is going to make another bid at Yahoo eventually, but it will probably be 3-6 months from now. I don’t think there will be a bidding war with google and microsoft. The government won’t let google buy yahoo in fear of creating a monopoly. There was some discussion that if the government would even let microsoft buy yahoo because of the monopoly issue.

    Prediction: Microsoft buys Yahoo for $32 a share in the late summer

  4. Brent
    May 5, 2008

    I think Google should by Yahoo, and just bury Yahoo search, and replace it with their own. They can keep all the other Yahoo crap (mail, games, etc), just bury the search part of Yahoo. How could that be a monopoly? There are 100’s of search engines out there and anyone can start one at any time.

  5. Alex
    May 5, 2008

    Google would never be allowed to buy Yahoo, and for good reason. They could charge whatever they wanted for advertising. If you dont like the prices, what are you going to do? Advertise on msn with their 5% market share instead?

  6. May 5, 2008

    Brent makes a valid point. You can’t call Google buying up Yahoo a “monopoly” by definition. But, in reality Google’s market control would be so massive, that many would see it as a monopoly. I wouldn’t be suprised if the gov’t stepped in if Google were to make a run at Yahoo.

    I’d much rather see Microsoft take over Yahoo because competition is always good for the consumer. Better to see two giants battling each other, than one sitting with 95% of the marbles, imo.

  7. Joe
    May 5, 2008

    Yahoo’s panama is such a pathetic lousy system. It’s so bad it’s pretty much useless to me because they don’t offer broad matching.

  8. May 5, 2008

    YHOO stock? The potential value of Yahoo isn’t worth the risk. There are easier ways to make 50% on your money and much higher rewards elsewhere for this level of risk.

    It’s too bad. Yahoo has a lot of great properties (Yahoo finance rocks). Hate to see them turn into Ask.

  9. May 5, 2008

    A monopoly is defined as: “A situation in which one company has gained control of the market for a particular good or service. This is in direct conflict with the values of liberalism which emphasize competition among numerous producers.”

    The problem there lies with Yahoo and Google merging, although there are 100s of smaller search engines out there, none compare to the pure volume of the major ones: Google, Yahoo, MSN and AOL. With Yahoo and Google merging it may create an web entity that is to powerful…

  10. May 5, 2008

    “The new addition of minimum bids made it even more retarded and pathetic.” Agreed 100%.

    Care to share how you’re taking advantage of it? ;)

  11. May 5, 2008

    Srsly can’t believe that the pepperjam guys thought this was even a possibility. If the anti-trust committe is already looking into GooGle and YahoO for gooGle taking over Yahoo’s search results, what would happen if GooGle made a bid to take controlling share of Yahoo?

    I think Microsoft has backed out, and will probably stay away now and invest that money into themselves rather than trying to float a sinking ship. I would not advise anyone to buy any Yahoo stock.

    * I am not a professional stock broker, any opinions stated in these comments are purely my own. Any decisions regarding your financial future should be discussed with a qualified professional. If you buy stocks based on the comments in a blog’s thread you deserve to lose your money. caveat empor.

  12. May 5, 2008

    Google buying Yahoo would be a very tough sell to the Feds. If it went through, Google would then dictate near 80% of the search market and you could almost GUARANTEE that advertising costs would skyrocket.

    Seriously doubt that it would even happen.

  13. May 5, 2008

    Now is the time for Ask.com to strike!

  14. May 5, 2008

    msn canceled bid on Yahoo but i don’t think google will buy yahoo because they not enough money haha

  15. May 5, 2008

    Microsoft and Yahoo are huge companies. Yes Microsoft wanted to tackle Google with the Yahoo merge.. The price Microsoft was offering Yahoo was a little bit to low.. And look now Yahoo stock has gone down. You can’t help imagining what would happen to advertising costs, and the cost to get recognized more within the online community.

  16. May 5, 2008

    Man, I would like to see a battle Microsoft VS Google. This could be actually very interesting :) Though, I’m still on google side, no matter what, but you just can’t buy Internet. I mean, even if Microsoft buy Yahoo, they need to implement something unique, something brilliant, which will attract visitors, not just increasing your visitor base by buying your competitor. Just my 2 cents

  17. Eugeniu
    May 5, 2008

    it’s not gonna happen , first they don;t have the money and second they already have more then half of search visitors , law won’t permit this

  18. Alex
    May 5, 2008

    Not sure this makes a ton of sense for GOOG. After all YHOO has come to the realization that they really do SUCK!
    If YHOO outsources the search why would GOOG want to spend $30B+ to acquire the company? If YHOO was to be bought by MSFT I’m not convinced that would change the competitive landscape at all.

    If GOOG was to purchase a brand they should focus on acquiring Skype from eBay.

  19. WayneDog
    May 6, 2008

    Google won’t buy yahoo and they wouldn’t be allowed to anyway, microsoft isn’t done and will make another bid on yahoo after stock prices tank which they have already started to do.

  20. May 6, 2008

    yahoo could be worth more…shit aint got no money i would have taken over yahoo by now! people dont know what yahoo is worth yet! Don’t look at me like that! :D

  21. May 6, 2008

    ummmm not really…if GOOG buys YHOO they would be better than the king of the internet they are already! GOOGLE+YAHOO = KINGPIN so let em keep on rocking u know? I would like google to buy yahoo though! IF not they should wait for me to come buy em with $100 bucks…i almost got it nows! I mean i will get it in my bank by then!

  22. May 6, 2008

    ummmm not really…if GOOG buys YHOO they would be better than the king of the internet they are already! GOOGLE+YAHOO = KINGPIN so let em keep on rocking u know? I would like google to buy yahoo though! IF not they should wait for me to come buy em with $100 bucks…i almost got it nows! I mean i will get it in my bank by next week!

  23. May 6, 2008

    I got your back buddy! Thats exactly what i was about saying but you wont believe me lol!

  24. May 6, 2008

    Did yahoo say they wanted a cash only thing? I dont think so! PArt cash part stocks so which one thats higher or low gets the going for em!

  25. Alex
    May 6, 2008

    DammSmiley give me one reason how GOOG would become a better company by acquiring YHOO.

  26. May 8, 2008

    Well, Google would do the right thing to try and buy Yahoo because that’s their only real competition and that’s not saying much. But I doubt Yahoo would sell low, if that was the case, they would’ve sold to Microsoft a while ago.

    Jay

  27. I think it’s a matter of time before Microsoft takesover Yahoo…

    Stanley Tang
    http://www.stanleytang.com

  28. May 18, 2008

    I don’t think Google will buy Yahoo, the price is way too high for them, but the partnership seems to be close.

  29. May 22, 2008

    Yeah, I hope that if Google buys Yahoo, they can at least give in some good efforts for their Publisher Program and some how try to make it a little better.

  30. May 23, 2008

    Google will beat Microsoft in my opinion.

    If they do, bye bye Mircosoft.

    Google + Yahoo = Complete Domination.

    -Dave King

  31. September 25, 2008

    Well, Yahoo did a very big mistake by not getting sold. Microsoft could it have made it much better.

  32. March 30, 2009

    Well, they still haven’t bought it. I think Google definitely would buy it, but I think they face a challenge with anti-trust lawsuits and things of that nature. I think destroying the competition is probably more profitable for them.

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