Google Lends “helping hand” To Yahoo

In an effort to stop Microsoft from snatching up Yahoo, Google is actively taking steps to prevent the $44.6 billion acquisition. Over the weekend, Google exec’s were busy working to spoil the deal; digging up Microsoft’s past antitrust struggles and raising concerns as to the impact a merger of this magnitude could have on the industry. Reports also cite that Google CEO Eric Schmidt even placed a call to Yahoo’s chief Jerry Yang, offering the company’s help in fending off Microsoft. Last Friday, Microsoft once again made an unsolicited bid for the struggling Internet pioneer, just as it did a year earlier when Yahoo’s apparent troubles revealed vulnerability in the company and its future. Determined to cut a deal this time, Microsoft has offered a generous $44.6 billion (or $31.00 per share) for the company, making it unlikely that any other suitor will come in and raise the bid. Microsoft contends the takeover would benefit consumers and advertisers because the combined company would pose a more formidable threat to Google’s stronghold over Internet search and advertising. With only an 8% share in the Internet search market, a Microsoft-Yahoo merger would offer the market reach, platforms and resources to compete with the Internet search behemoth. Google is attacking Microsoft’s proposed takeover arguing it would be bad for consumers and citing Microsoft’s past antitrust troubles as reason for concern. The proposed deal has already grabbed the attention of Washington as Google lobbyists plot to present a case to lawmakers. Most analysts believe Yahoo will eventually wind up in the clutches of Microsoft because no other conceivable suitors have the financial power and determination to match the software giants’ bid. As the saga unfolds, it is also believed that Microsoft could end up paying a premium as high as $35 per share—dependant upon how many waves Google can make before the deal is finalized.