Photo: Yodel Anecdotal
Yahoo is currently trying to renegotiate its search and advertising deal with Microsoft, Kara Swisher at All Things D is reporting.At the same time, Yahoo is also in talks with Google about taking over Yahoo’s search business, says Swisher.
This is a huge turn of events, but we’re not sure it’s actually possible.
After all, Microsoft and Yahoo made a 10-year deal when they partnered on search. Unless there are outs in the contract, we’re not sure how Yahoo can renegotiate the contract. It’s possible Microsoft has missed certain targets, making renegotiation possible.
Assuming Yahoo can get out of its deal with Microsoft, joining Google still might not be possible. When Microsoft first tried to buy Yahoo, Google offered a search deal to Yahoo. The Department of Justice basically killed it. That was in 2008. The government is much more critical of Google today, so we don’t think it will happen.
Regardless, the fact that Yahoo’s new CEO is trying to blow up his contract with Microsoft is an interesting move. We’ll be curious to see how it plays out.
If you know anything about what’s really going on, email [email protected]
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