After the long struggle with Microsoft, Yahoo has found a new bride, and we’re not talking about weddings here. Yahoo said it had agreed to let Google put search ads on its site in what it called an $800 million annual revenue opportunity that would boost cash flow by $250 million to $450 million in the first 12 months.
Yahoo’s ads and Google’s would go against each other in what would be called an auction style process that could make a deal easier to pass regulatory approval.
I always knew that these two giants would be better off with one another than for Yahoo to be with Microsoft. I think this is a big win for both, and we hope they will send us some good fortune soon.
Microsoft said it was not interested in “rebidding” for all of Yahoo, sending its shares up more than 4 percent as investors showed relief that the company would not be paying too high a price for a deal they considered risky.
Hey Icahn! What do you have to say now?
