Microsoft Comments on Yahoo Using AdSense

April 10, 2008 | by Nick Mokey

The company claims that cooperation between Yahoo and Google would cede 90 percent of the search market to Google, suggesting its own buyout offer as the best alternative.

After facing rejection after rejection from Yahoo in its plan for a proposed buyout, Microsoft seemed none too pleased on Wednesday to see the apple of its eye cooperating with another tech goliath. Wednesday afternoon, the company released a statement criticizing Yahoo’s recent involvement with Google.

"Any definitive agreement between Yahoo! and Google would consolidate over 90 percent of the search advertising market in Google's hands,” the company wrote. “This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo. We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”

Microsoft’s insistence that its buyout would be best for shareholders is likely a response to Yahoo’s original announcement for its test run of AdSense ads in Yahoo searches. In it, The company explained that its board of directors were, “exploring strategic alternatives to maximize stockholder value, including exploration of potential commercial business arrangements.”

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