Microsoft’s failed attempt at taking over Yahoo might be one of the best things that could have happened for one of both companies’ rival – Google. Having wasted months of talking and negotiations, neither Yahoo or Microsoft is any better off today then they were when Microsoft first made their bid in late January. Google, however, has every reason to celebrate.
Amidst the chaotic speculation and talks between Microsoft and Yahoo, Google was able to strategically step in and offer Yahoo an alternative to being taken over by Microsoft. Google and Yahoo launched a trial that saw some Yahoo advertising replaced with Google ads in Yahoo’s search results. The trial is believed to have gone well, and the pair may announce a longer term partnership soon.
Google is now also in the unique position of having a heavy hand in the determining of Yahoo’s fate. Most Yahoo shareholders see only two viable options at this point, which is either re-opening negotiations with Microsoft, or serving up some of Google’s ads in their search results to make some extra cash.
So not only will the rift between Microsoft and Yahoo potentially bring more business and revenue Google’s way, but it also leaves the online advertising market open for Google’s expansion. Neither Microsoft of Yahoo has been able to come even close to competing with Google’s online advertising program on their own. Google is now poised to remain the online advertising king for the foreseeable future, so long as they can help Yahoo stay afloat long enough to keep them out of Microsoft’s hands.
Google and Yahoo are still reportedly working out the terms of a deal to have Google ads displayed in Yahoo SERPs, and are discussing the plans with antitrust regulators to lessen any concerns. No final agreement has yet been reached.