Yahoo's board of directors have two options in the wake of Microsoft's takeover bid: they can accept the bid, or swallow their pride and do a paid search deal with Google.
As
much as Yahoo would love to see a bidding war, no one besides Microsoft could afford to pay more than $31 per share for the company. Moreover, nobody else--with the possible exception of eBay--makes
logical merger sense. So what will it be, a Microsoft merger or a Google search deal? Yahoo's pride might be worse hit by selling itself completely.
Meanwhile, it's far from certain
that a Microsoft merger or a Google partnership would pass an anticompetitive sniff test in the U.S. or E.U. That's precisely why Google is arguing to preserve the status quo--it doesn't really need
Yahoo's business, as most of the search revenue would go to Yahoo, although that would be better than Microhoo creating a viable search competitor.
Read the whole story at TechCrunch »