Google spoiled the Microsoft-Yahoo deal

Steve Ballmer and Eric Schmidt have tangled before. Microsoft certainly got the best of Novell way back when. Now Schmidt may have had his revenge. The New York Times reports that Google played the role of spoiler to near-perfection, emerging a the clear winner in the merger-fest. The company offered Yahoo some more sophisticated ad technology, which emboldened Yahoo to holdout for a higher price. Yahoo may have no choice now but to seek a tighter embrace with its one-time foe. Microsoft may yet have the last word. If Yahoo can't get its stock price to reasonable levels--and some hedge funds are furious about what has transpired--the merger talk may heat up again. The best thing that might happen at some point would be for Microsoft and Google to throw off the gloves and bid directly for the company.

For more:
- here's the Times article
- here's the New York Post article on angry Yahoo shareholders

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