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Microsoft-Yahoo! Deal Gets Push from Google-DoubleClick Merger

Date: 03-14-2008



The European Commission gave a green light to the Google-DoubleClick merger, thereby finalizing the deal and putting further pressure on Yahoo! to find a new partner quickly, according to analysts. Sources also suggest that the approval of the deal will blunt Google’s own arguments and antitrust claims against Microsoft about the proposed Microsoft-Yahoo! deal. Moreover, Yahoo! will face a direct threat in the Internet search and advertising arena from the alliance, even as it seeks to thwart Microsoft’s billion-dollar hostile takeover effort. DoubleClick’s partnership with Google will transform the search giant into a full-service ad company with both display and search features, capabilities which only Yahoo! could boast previously. Accordingly, the new competition from Google will lead to a weakening in Yahoo!’s position as it strives to remain independent, while simultaneously strengthening Microsoft’s stand.
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