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Yahoo! Inc. (Nasdaq:YHOO - ), a leading global Internet company and Overture Services, Inc. (Nasdaq:OVER - ) a global leader in commercial search services on the Internet, today announced they have signed a definitive agreement under which Yahoo! will acquire Overture. Under the terms of the agreement, each outstanding common share of Overture will receive 0.6108 shares of Yahoo! common stock and $4.75 in cash, reflecting an aggregate purchase price of approximately $1.63 billion, or $1.52 billion net of Overture's March 31, 2003 cash balance, less the amounts earmarked for their two recently closed transactions.
I reckon they'll be picked up by someone, perhaps like AOL.
Surely all those Yahoo competing portals that use Overture are going to be looking for a way out. That could create a number of opportunities for the likes of E-Spotting.
The interesting part for me is Ink, AV and FAST all ending up with the same owner. I'd say the curtains will come down for at least one of those.
This aspect also creates problems for MSN and other portals. The number of 'proven scale' search options just shrunk. No wonder MSN is developing search for themselves.
For MSN, it's quite a big drama I suspect. Yahoo now own both ends of their search sandwich, leaving a horrible tasting filling in Looksmart. Horrendous.
My main fear is actually that Yahoo get carried away with their PPC ownership, and wreck their search experience as a result. I would hope that they would have learned the lessons of where that path leads by actually watching the dogs dinner unfold at MSN (who have been left with only a handful of cards, and pretty poor ones at that).
It is creating competition against Google - Yes, but at the same time Inktomi, Alltheweb and Altavista all owned by Yahoo - should be the death of two of these IMHO (or of course breaking them up again?).
Makes you wonder how far things are planned in advance.
Yahoo may have been aiming to take over Inktomi followed by Overture to get both PPC and Crawlable web results but had no intention to acquire Altavista and Alltheweb.
This is certainly going to be an interesting year. Google just got chopped down another notch. They need to get out of the tech arena and start throwing around some corporate muscle.