Yahoo is in the midst of a three-front war—and yet not one of these fights is for dominance in any field of
Google Chief Legal Officer David Drummond will point out . . . that the agreement does not expand Google’s share of the search market, and that the alternative outcome, Yahoo selling to Microsoft, would be much worse for competition.
Aside from facing the Senate now and other regulatory committees later, Yahoo and Google will face individual states, which are also subpoenaing them.
Yahoo is lucky to have an ally in these battles, even if the ally also happens to be their biggest rival. But that biggest rival happens to be the “enemy” of their next most formidable opponent, Microsoft—and you know what they say about the enemy of my enemy.
Among other things, Microsoft states that the latest plan was submitted to Yahoo at the behest of Yahoo’s own chairman, Roy Bostock, and did not include a change of governance for Yahoo. However, the deal was for only the search portion of Yahoo, which deal Yahoo was apparently not interested in after all.
While Microsoft claims that they’re no longer interested in Yahoo, they continue to sally on the already-beleaguered Yahoo.
Space, the Final Front
And, as always, there’s Carl Icahn, still pushing to elect his proxy board in the August 1 shareholder meeting.
Is it any wonder that Yahoo’s turned to Google for support? But will the search ads provided by their biggest rival be enough to sustain Yahoo through Microsoft’s and Icahn’s continued attacks?