yahoo finally talks to Google.

Recently a week after the Microsoft Yahoo mayhem, with Microsoft's plan to establish a strong hold in the on line advertisement suffered a big blow, with merger talks with Yahoo finally failing, Yahoo said that it would allow Google to sell ads on its site. Yahoo shall thus be generating revenues over $800 million annually. Google has thus made a huge strategic improvement, shutting down all the hopes of Microsoft entering into the on line space all together. Over all in the hustle and tussle between Yahoo and MIcrosoft the gainer was certainly none other than Google. After Microsoft declared the idea of buying Yahoo, the shares of yahoo came down with a crash. Microsoft any ways couldn't capitalize on this and had a minor gain.

Microsoft frustrated after the deal didn't even reconsider the earlier bid of $33 per Yahoo share. The share holders and specially Icahn was pressurizing Jerry Yand to go ahead for a deal with Microsoft, failing which he even wanted Yang to be ousted. Analyst say Yahoo and Microsoft shall not again go for another round of negotiations. It certainly seems the end of deal. Icahn on the other hand shall be trying to convince Yahoo to go ahead with the talks with Microsoft and keep up the shares, in the Annual meeting scheduled to be held this August. Google shall be a second choice.

The battle of giants here in the share market has taught many of the industry dwarfs a lesson about the importance of secrecy in a merger / acquisition phase of the deal. The two firms have proved their desperation over the issues very close to them and have set an example of how one could bring down the other by just creating a market hype.

Recently CNET has also mentioned about a web site where yahoo employees could write down their resignations to CEO Jerry Yang and thats how the Internet community has been responding in this regard. There shall be more to come up regarding the matter as time passes. May be some day one could make a web site where people could bid for Yahoo on line, (or may be i am thinking to ahead of time..). But one thing that Yahoo must now be focusing on is rather to fight back and get the shares in control. May be the spirit at this time is low but, thats what counts in an industry when there are troubles and hardships. Its shear team spirit that yahoo employees must be thinking of right now to make things going back their way.