Yahoo will report its first-quarter searnings on April 22.
A deal between Yahoo and Google could give Yahoo a lot more leverage in terms of an asking price from Microsoft. The partnership could boost Yahoo's revenue by $500 million a year.
By Jerry Carter
Apr 17, 2008 13:00 PM GMT
Yahoo Inc. is edging closer and closer to completely outsourcing its search advertising to Google Inc. This comes following a test run of the Google ad system, which both companies stated was very positive. A deal between Yahoo and Google could give Yahoo a lot more leverage in terms of an asking price from Microsoft. The partnership could boost Yahoo's revenue by $500 million a year. Currently, the bid from Microsoft stands at $42 billion, but Yahoo believes the company is worth more.
It seems that Yahoo is certainly doing their best to try and play games with the Microsoft ordeal.Due to the profitability of Google’s advertising system, it manages to pull in a lot more money, meaning an increased cash flow for Yahoo. This could lead to them trying to get that price of higher than $31 per share offered by Microsoft. Yahoo could also gain more leverage in its rumored talks with Time Warner Inc.’s AOL about a merger. A lot is riding on April 22, when Yahoo reports its first-quarter earnings. If it shows promise, Microsoft may be forced to empty their pockets to make the deal happen.
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