As much as Microsoft would like this saga to end, I don't think that there's anyone who believes that we're anywhere near the last chapter in this story. While Microsoft has re initiated discussions with Yahoo! in hopes of forming some kind of partnership after the failure of its initial buyout bid, Google is holding strong on its own deal with Yahoo!. With as much as $1 billion on the table for Yahoo!, it may be difficult to exclude Google's proposed advertising collaboration from the picture.
Not surprisingly, of course, antitrust concerns have surfaced with talk of the possibility that the two largest online advertising giants could unite, but Google is adamant that it can work out a model that would not threaten the competitive landscape. To their credit, there is a fair bit of precedent on which to lean on. Canon, for example, supplies 80% of the laser printer market ...including its #1 competitor Hewlett-Packard or Toyota selling its hybrid technology to its competition. Similarly, Google foresees a partnership that would leave Yahoo! independent, but allow it to leverage its superior advertising technology and broader advertiser base to help its bottom line.
With Yahoo!'s board announcing that it has postponed its annual meeting once again, there's no doubt that Jerry Yang, its CEO, have a lot to consider. The likes of Carl Icahn and Boone Pickens, with 10 million shares each and calling for a new board, aren't making things any easier for them either. From an outsider's (and investor's) perspective, however, it's hard to see how Yahoo! will not win in the end regardless of the outcome. Is this not the time to buy?
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