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The new plan cuts the agreement from 10 years to two years and limits the revenue that Yahoo can collect to 25 percent of its search revenue, the Journal reported citing people familiar with the matter.
Another revision is that Google advertisers can ask not to be placed on Yahoo, the Journal reported.
Google said in a statement that talks with the Justice Department were ongoing. "We are not going to discuss the details of the process," spokesman Adam Kovacevich said in an e-mailed statement.
Yahoo issued a similar statement.
I am pretty sure this is a plan coming from google to take over yahoo... It wont take much if google is the source of its revenue. Yahoo is desperate to stay afloat yes, but google is $$$$ and they love to buy out companies.
If google and yahoo gets combined, there will be no stopping google on its latter to the richest corporation.
[edited by: AlienDev211 at 5:00 pm (utc) on Nov. 4, 2008]
G + Y (in entirety) will never be allowed, surely
Im going to use an example of cell phone big corps. Quite a few years back the top 3 cell phone providers was 1)Verizon Wireless 2)Cingular and 3) ATT and i beleive 4) was t-mobile. When ATT and cingular did their deals and became one company, that put them at 1) and verizon at 2). without to big of issues with anyone.
Why would G buy Y, when then can reap most of the profits anyway, whilst pulling all the strings from the shadows?
if g bought y, they wouldn't have to "pull strings", they wouldn't have to be in the "shadows". Google doesn't like to be in the shadows. They like being in the spotlight. take a look at their list of domains at some point. "googlemutherf@#%er.com" ? if they will buy that but will leave email@example.com alone for someone to play with, and they have, and it is a big big joke out there being sent to millions.. something google would normally buy.. especially cause it has their name in it, they have the power to take it.
without saying to much more, because i simply don't have time (i will try to post more later), i will leave it with this. Google would buy Yahoo to gain more control over the internet. They are a company that likes to push standards, and create them. With Yahoo falling as the next big wig search engine/yahoo products, they would be number 1 for awhile and give a standard for the next big search engine to compete. Right now, they need yahoo to grow for competition, and they are the only plausible option.
Yahoo is desperate to stay afloat yes
Just for purposes of accuracy... Yahoo is not desperate to stay afloat. Yes their stock is down but they remain the web's most visited portal (you can't really put a dollar figure on something that valuable) and the web's second largest search engine.
They also continue to make a large profit, which is generally not the case with drowning companies.
...but they remain the web's most visited portal (you can't really put a dollar figure on something that valuable)...
Some would disagree.
Yahoo's earnings statements give a pretty accurate idea of just what their most-visited-portal status is generating in terms of dollars.
Sure... Yahoo probably aren't achieving maximum monetization or profitability, but as the economic woes continue, companies are being acquired based on much more realistic valuations than was the case, say 18 or even 6 months ago.
Microsoft's reluctance to increase their bid and the failure of another bidder to enter shows that their is an upper-limit, and that limit happens to be based on market-value (which itself is based on earnings multiples).
Unfortunately for Yahoo - their upper-limit valuation has been decreasing.