The WSJ anounced today that Yahoo and AOL are closing a deal. This will have a huge impact in the business, and Microsoft seems to have already been responding to it. Combined together, they will have a large audience to sell online advertising, and Microsoft might have to pay more if it wants to acquire Yahoo, which has recently tested the Google AdSense search. The Yahoo-AOL combined with Yahoo-Google search partnership will make Yahoo even more attractive.
Below is an excerpt from the WSJ article:
"Yahoo and AOL are broadening their businesses to sell online advertising across other Web sites. Such efforts are in part a recognition that much of the growth momentum online has passed to younger players such as Facebook Inc.'s social-networking site and Google's YouTube video-sharing service.
Responding to such trends, Microsoft wants to combine with Yahoo to better challenge Google. Microsoft Chief Executive Steve Ballmer, in a letter Saturday, gave Yahoo directors three weeks to reach a friendly deal before Microsoft would go hostile, implying that Microsoft would lower its bid in that case."
(full article: http://online.wsj.com/article/SB120776803032602423.html?mod=hpp_us_whats_news)
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