Yahoo is now turning to Google to help quash a rebellion among its shareholders who believes it should have accepted Microsoft’s $47.5 billion buyout offer while it was still available last month. Yahoo announced its decision to let Google handle some of its advertising sales, just a few hours after revealing it unsuccessfull trials to persuade Microsoft to renew its previous offer of $33 per share.The snub caused Yahoo to conclude that there is no hope for any kind of deal with Microsoft..
Although Yahoo believes Google could help boost its annual revenue by $800 million, the advertising partnership was not enough to ease the disappointment of investors who had been holding out hope for a microsoft deal. Yahoo shares has fallen by 85 cents. or 3.6 per cent, to $22.67 so far. On the other hand, Google shares rose $12.96, or 2.3 per cent, to $565.91 and Microsoft shares gained 53 cents to $28.77.
Google already holds about 75 per cent of the $ 11 billion search advertising market in the United States with Yahoo a distant second at none per cent. Yahoo incorporated became Microsoft Corporation’s takeover prey largely because Google incorporated eastablished such a commanding lead in the internet’s lucrative search advertising market.