Stock Market Analysis: Google (GOOG) Deal with Yahoo! (YHOO)
One of the big stories in the tech world right now is the fact that Yahoo! (YHOO) is running test ads for Google (GOOG). That’s right, Google is placing text ads on Yahoo! The two companies are considering a partnership — something that Microsoft (MSFT) has got to be freaking out about this. After all, the whole point of Microsoft’s bid for Yahoo! is so that it can compete with Google head on.
Is it just me, or is Yahoo! trying its best to inflict as much psychic damage on Microsoft as possible?
Indeed, the whole point seems to be for Google to spread its influence even further while Yahoo! does its utmost to remain, well, independent. Or maybe Google would buy Yahoo! But, what would the federal regulators say?
At any rate, the test ads may be the first step for Yahoo! to actual outsource its search advertising to Google.
Of course, this still doesn’t make Yahoo! worth what the company (if no one else) thinks it should be. The latest is that Yahoo! is below $29 a share, and even the news that the test ads have been deemed a success so far hasn’t been able to give YHOO a boost. BloggingStocks points this out about Yahoo!’s aversion to the Microsoft offer:
Since no one other than Microsoft wants to buy the portal, the answer is that Yahoo! has lost all options to defend its present strategy. A deal with Google does not, in any way Yahoo! can explain, make the company worth $30 a share.
So, will Yahoo! ultimately allow Microsoft to buy it? Or will it retain its independence until someone else makes an offer?
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.
Tags: Google deal Yahoo, stock market analysis, stock market blog, investing blog,
GOOG, YHOO, MSFT
