Microsoft-Yahoo deal gets extended antitrust review

Sep 15, 2009 By Benjamin Pimentel and John Letzing

Antitrust regulators at the Justice Department have requested more information about the planned search and advertising deal between Microsoft Corp. and Yahoo Inc., the companies said Friday.

The Justice Department sent the request for additional information earlier this week, the companies said. and Yahoo, hoping to put their arrangement into effect early next year, had previously revealed that they anticipated a "second request" for information from the department.

The second request follows an initial review begun shortly after Microsoft and Yahoo publicly unveiled the partnership in July.

Under the terms of the deal, Microsoft would effectively gain control of Yahoo's search service, with Yahoo assuming responsibility for selling related advertising, in an effort to gang up on market leader Inc.

The partnership was expected to draw regulatory scrutiny, as it would effectively shrink the U.S. Internet from three major players to two.

"We expected a close review," said Microsoft spokesman Jack Evans.

In a statement, Yahoo spokeswoman Nina Blackwell said the companies "firmly believe" that information they'll provide will confirm that their deal is not only good for the two companies but for advertisers, publishers and consumers.

The planned partnership emerged in the wake of a bruising Yahoo attempt by Microsoft last year. At one point, Microsoft had offered to buy the company outright for $44 billion -- an offer current Yahoo Chief Executive said during a cable-television appearance Thursday she would have accepted.

"You think I'm stupid?" Bartz asked during an interview on the business-news channel CNBC. Bartz replaced Yahoo co-founder Jerry Yang as CEO in January.

Many Yahoo investors expressed displeasure with the deal ultimately struck with Microsoft, however, having anticipated either a larger upfront payment or a more prominent role for the company in controlling the combined search service.

shares were up nearly 1 percent to $15.60 in Friday-afternoon trading, while shares of Microsoft had dipped slightly in the session to $24.99.
___

(c) 2009, MarketWatch.com Inc.
Visit MarketWatch on the Web at www.marketwatch.com
Distributed by McClatchy-Tribune Information Services.

Explore further: EU Parliament votes to break up Google

add to favorites email to friend print save as pdf

Related Stories

Yahoo shares rise following Microsoft ad-deal report

Apr 13, 2009

SAN FRANCISCO _ Shares of Yahoo Inc. bucked the downward trend for technology stocks Monday and gained more than 7 percent, following reports late last week that the company is in serious discussions with Microsoft Corp. ...

Yahoo investors unimpressed with Microsoft deal

Aug 30, 2009

An Internet search and advertising partnership that Yahoo Inc. struck with Microsoft Corp. last month has so far failed to inspire the Sunnyvale, Calif.-based company's investors.

Microsoft, Yahoo! in search, ad talks

Apr 10, 2009

Microsoft and Yahoo! have held "early discussions" about possible Internet search and advertising partnerships, a leading Silicon Valley technology website reported on Friday.

Yahoo CEO: Shake-up needs more time, not Microsoft

Jun 03, 2009

(AP) -- Yahoo Inc. Chief Executive Carol Bartz has a message for investors hoping for a quick fix at the slumping Internet company or for an online search partnership with Microsoft Corp. - don't expect either to happen ...

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.