Yahoo! 'calls in Google's help'

4th February 2008

Microsoft's $44.6 billion (£22.4 billion) proposed takeover of Yahoo! is likely to meet opposition, it has been claimed.

The Wall Street Journal reports that Yahoo! is concerned that the offer undervalues the firm and as a result is requesting Google's assistance in pressuring for a higher bid.

"The combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for internet search and online advertising," said Microsoft's general counsel Brad Smith. "The alternative scenarios only lead to less competition on the internet."

In a statement on the firm's online blog, Google's senior vice-president David Drummond admitted the takeover raised "troubling questions".

Mr Drummond claimed that the deal raised issues about the web's underlying principles of openness and innovation.

In December, Google performed record figure of 66 per cent of US searches, followed by Yahoo! with 21 per cent and msn with seven per cent.