Google on Sunday weighed in against  Microsoft’s unsolicited $43bn cash-and-stock offer for Yahoo, launched Friday, arguing it could open the way for the software giant to extend its PC monopoly to the internet. The intervention is the latest twist in the growing enmity between the two companies, and echoes Microsoft’s own denunciation of Google’s proposed acquisition of online advertising company DoubleClick. While Microsoft claimed that deal could leave Google with inordinate power over online advertising, Google executives contend that Microsoft could be in a position to influence the evolution of the web itself. Separately, an alliance with Google is being seen inside Yahoo as a key option as the company tries to fight off Microsoft’s hostile approach, said a person familiar with its thinking. Yahoo rejected the idea of a tie-up with Google last year but is now rethinking the option, as well as considering ways to realise more value from its stakes in Japanese and Chinese joint ventures. In a separate analysis, the FT examines prospects for the deal, while the Wall Street Journal gives us  a Q&A with Microsoft chief Steve Ballmer.

This entry was posted by Gwen Robinson on Monday, February 4th, 2008 at 5:56 and is filed under Capital markets, M&A. Tagged with google, microsoft, yahoo. Edit this entry.