Over the weekend Google tried to thwart the attempt by Microsoft to takeover Yahoo!, by being quite vocal about the concerns, see Official Google Response: Microsoft’s Bid On Yahoo! “Hostile”.
Google fears a stiff competition if the deal materializes, see: Is Microsoft’s Purchase Of Yahoo! An Inevitable Reality?. In its official blog it reasoned against the offer and reached out to policymakers with its words “Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors’ email, IM, and web-based services? Policymakers around the world need to ask these questions — and consumers deserve satisfying answers.”
Now reports are coming in that Yahoo! might consider to revisit talks it held with Google several months ago. Microsoft’s bid of $31 a share, is being considered as an undervaluation of the company by its management.
In the past Google and Yahoo! had been buddies as Yahoo! used Google’s search to power the search on the portal. However, later Yahoo! bought Inktomi, Altavista and search from Fast’s AlltheWeb to establish the Yahoo! search technology.
So could history be repeated with Yahoo! and Google coming together. But before we jump to conclusions it is important to remember that even Microsoft and Yahoo! were buddies too! as initially Yahoo! Search Marketing was the backbone of Microsoft Sponsored Search Ads, before they separated.
There is another angle to it, neither Google nor Microsoft but some other bidder too could come out as winner, as rumors abound that several telecom companies are interested as well. Till, Yahoo! settles down for the most suitable mate, all of us would have to patiently wait!