Yahoo / Microsoft deal put on hold
It was July 29th when Carol Bartz and Steve Ballmer announced the much discussed deal between Yahoo and Microsoft. Yahoo would be using Bing as their default search engine and all search related topics would be shifted to Microsoft.
The 'nuptial agreement did leave open some options for Yahoo to get out of the deal. If MS/Yahoo wouldn't perform well enough against Google on the key metrics of revenue per search and U.S. market share, the deal could be terminated by Yahoo. Both parties say the fact that the deal has been postponed is not related to this issue. However, Yahoo and Microsoft just need more time, so they say.
“Given the complex nature of the transaction, there remain some details to be finalised. The parties are working diligently on finalising the agreements, have made good progress to date, and have agreed to execute the agreements as expeditiously as possible.”
Both parties expect the deal to come through in 2010, but it does take more time than expected, which will without a doubt have an impact on the deal as a whole and the success of a deal. Though the deal seemed certain there are some bumbs in the road which could turn out to be a bigger obstacle than expected.
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