Google Already Submitted A Term Sheet To Buy Yahoo's Ad Tech

Nikesh Arora

Photo: Screenshot from Reuters/YouTube

Google made its first offer to buy Yahoo’s ad tech business about three months ago, a source with knowledge of the deal tells us.That offer, made while Scott Thompson was still CEO, “didn’t make it pass corporate develop,” says a source.

Talks remain on-going.

Previously, we’d heard that Accenture and IBM were interested in Yahoo’s ad technologies (and customer list).

We’d heard those companies were prepared to pay a price between $500 million and $1 billion.

One former senior Yahoo still in the ad tech space tell us the no-brainer move for Yahoo interim CEO Ross Levinsohn is to sell the properties to Google, and, in the process, outsource Yahoo’s remnant advertising sales to Google’s ad exchange as well.

This source, speculating, says Yahoo would be able to cut 2,000 jobs and, because Google is so good at selling ads, increase EBIDTA by as much as 50%.

When we told this to a Yahoo source of ours, this person said: “You sound like Nikesh.”

Nikesh Arora is Google’s chief revenue officer – a notoriously hard bargainer (and pretty good golfer, too).

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at

Tagged In

google sai-us yahoo!