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Yahoo Japan shares down after Microsoft deal bust
bill

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Msg#: 3644370 posted 1:37 am on May 8, 2008 (gmt 0)

Yahoo Japan shares down after Microsoft deal bust [guardian.co.uk]

Analysts have said a successful Microsoft bid for Yahoo could slow the growth of their common rival Google Inc in Asia, where the world's biggest search engine still lags local players.

The failed deal leaves the online advertising market wide open to Google's expansion.

Microsoft's money and pool of researchers were huge attractions for cash-strapped Softbank and Yahoo Japan, which shares some of Yahoo Inc's search technology, as they seek to cement Yahoo Japan's dominant position in the country.

While wary of Microsoft control in locally managed businesses, Yahoo Japan could have taken advantage of Microsoft's scale to lower marketing costs and help it tap Microsoft's resources to make searches faster, analysts say.


 

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