Posted October 31, 2008 9:50 am by with 14 comments

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I’m going to stick my neck out and say that I do not believe Google had any intention of going through with a partnership deal with Yahoo. Further, I believe that the only reason this deal was done was to prevent Microsoft from getting its grubby little hands on it.

For one thing, since when does Google delay a deal for a significant amount of time, so that regulators can carefully look at the details? That would be akin to a football team taking a time-out so the review booth can have the chance to overturn their OWN touchdown ruling.

Second, the WSJ is reporting that Google may walk away from the deal, rather than comply with the demands of the Justice Department. The same Google that has been criticized for bending over backwards to accommodate the Chinese government!

The option to scrap the deal has been on the table before, but Google in particular has begun considering it more seriously as Justice Department talks haven’t progressed. One sticking point has been the department’s discussion of having the companies sign a consent decree stating the terms of the partnership. That would subject their compliance to continuing oversight by a judge.

If Google had any real intention of partnering with Yahoo, I believe it would have pushed for the deal quickly and it would be eager to work with the DoJ on the terms.

Instead, Google had no real intention of partnering with Yahoo–it just wanted to block and tackle Microsoft. Job done! The question now is, what happens to Yahoo, now that it’s out in the cold?

  • I have a sneaking suspicion that you are right. I however believe that the MS story is not yet over for Yahoo.

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  • How about this Andy… I believe Microsoft is going to pick up some or all of Yahoo – still. πŸ™‚ //g

  • Very possible. I was thinking that Google was trying to help a company who helped them get started while at the same time trying to keep Microsoft at bay. Depending on who at Google was in charge of overseeing the deal would probably shed more light on their true intentions.

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  • I think they were just making sure yahoo knew what they can do if they want

  • Dean

    I think you’re absolutely right Andy.

    I think it’s clear they used similar tactics bidding on wireless spectrum earlier this year. Once they scared Verizon into bidding above the minimum amount that would make it open spectrum, they bailed. Google got the open spectrum they wanted and got Verizon to pay for it.

    Brilliant gamesmanship!

  • @Dean – you agree with me? OK, now I’m scared that I’ve gone too far! πŸ˜‰

  • I Agree. But I think its just a matter of time before the Yahoo-Microsoft Deal takes place.

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  • Good point. You’re probably right.

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  • That’s good and all, but what about the fact that they would have basically a monopoly over the online advertising industry. You didn’t address that fact…

  • this could be happen and you’re probably right. but what will happen next day, who knows πŸ˜‰

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  • Whether is it Microsoft or Google, I believe this is going to be a huge tipping point in the search industry.

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  • I doubt any such deal taking place, and after reading this article I believe it certainly will not!

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  • cat

    I absolutely agree that google had no intention of partnering with yahoo and i also don,t like microsoft who are trying to get everywhere they can

  • I totally agree with Saad Kamal. It is just the matter of time and nothing else. Google needs yahoo for sure.