Reuters reports that Yahoo is considering outsourcing search monetization to Google as a way of keeping Microsoft at bay.
This move would likely instantly drive at least several hundred million dollars of incremental revenue and operating profit for Yahoo. It would not likely cause Microsoft to give up its pursuit of the company, but it might result in a higher bid. It also might reduce shareholder pressure on Jerry and the Yahoo board.
The WSJ says Eric Schmidt called Jerry Yang on Friday to offer help. “Help,” according to the Journal’s sources, could include the search deal or “a role in attempts by others to outbid Microsoft, or by Yahoo to remain independent.” The NYT says Google also placed calls to Time Warner to offer help if Time Warner wanted to make a counter bid (highly unlikely, in our opinion).
Not that Jerry doesn’t need all the help he can get, but Google’s anti-Microsoft obsession borders on Ahabian.
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