The Deal
Friday, November 20, 
9:21 pm

With DOJ set to block Google-Yahoo!, Google pulls out

  Share     E-Mail    Discussion    Print Story
MicrosoftYahooGoogleLogos.pngThe Department of Justice told lawyers for Google Inc. and rival Internet search company Yahoo! Inc. Wednesday that the agreement between the companies is a no-go. DOJ said it would announce its decision to challenge the deal by midday Wednesday, according to sources who asked not to be named.
 

Continue reading below

Also on Dealscape

And Google senior vice president David Drummond Wednesday announced that Google was throwing in the towel and would not fight DOJ in court.

"We're of course disappointed that this deal won't be moving ahead," Drummond wrote on his blog. "But we're not going to let the prospect of a lengthy legal battle distract us from our core mission. That would be like trying to drive down the road of innovation with the parking brake on. Google's continued success depends on staying focused on what we do best: creating useful products for our users and partners."

The DOJ has been reviewing a contract between the two companies that sought to bolster Yahoo!'s revenues, and keep it out of the hands of rival software behemoth Microsoft Inc. ever since that company announced a bid for Yahoo! in February.

Google's effort was seen as a white-knight rescue, but it proposed running the agreement past DOJ before implementation to make sure antitrust regulators were comfortable with it. DOJ, however, took a strong dislike to the agreement, saying that any cooperation between two of the three largest online search advertising platform would likely harm consumers by reducing competition. - Cecile Kohrs Lindell

See earlier stories:
DOJ challenge to Google-Yahoo! looms
Hope fades for Google-Yahoo!
See Google press release

Cecile Kohrs Lindell is a senior reporter in The Deal's Washington bureau.



Post a comment





The Deal Pipeline

Deal Video


Inside The Deal: Avaya Inc.'s Mohamad Ali on the company's next target.


More video...

Crisis On Wall Street
Technology
Deals of The Decade

Community

Industry Insight

Managing your shareholder base

Growth companies and their PE sponsors should be wary of the pitfalls that arise when they layer on tiers of preferred stock.


Industry Insight

Easing the stress of distressed M&A

Corporate buyers face numerous complexities when trying to identify the right moment to purchase a distressed asset.


Editor's Note

Editor's letter: Nov. 16, 2009

Beneath the veneer of Wall Streeters beats the same heart, stirred by the same determinants of behavior.


footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg


©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.