After Talks with Microsoft,Yahoo asks Google for help.

Microsoft trying to get Yahoo! This has been among the key News reaching our ears for the past 3-4 months.But its finally over now.After having no effect on Microsoft on being asked to reconsider the offer of $33 per share,Yahoo has concluded that there is no hope of any kind of deal with Microsoft.But the Yahoo shareholders believe that is it immaturity to deny a $47.5 billion buyout offer when it was still available last month.This has given rise to a rebellion among its shareholders.

To curb this rebellion Yahoo has turned to Google for help.Yahoo announced that Google will handle some of its advertising sales which will boost their annual revenue by $800 million.A recent research reveals that Google already holds 75 percent of the $11 billion search advertising market in the United States with Yahoo a distant second at 9 percent.But a problem for Yahoo is its antitrust scrutiny with Google which might prevent its alliance.

This deal is expected to have and will have a large effect on advertisers and consumers.So Microsoft and other consumer-interest groups are already planning to turn up the political heat to prevent Google from working with Yahoo.

A lead investor in Yahoo, Carl Icahn along with the shareholders rebellion is threatening to change Yahoo’s board for the way they handled talks with Microsoft.He is also trying to engineer sale to Microsoft.So, the fate of Yahoo’s board is supposed to be decided in the company’s annual meeting on 1st August.

Yahoo’s deal with Google includes an escape clause which reveals that if Yahoo is sold then Google will receive a termination fee of $250 million.This can have additional backing to Icahn’s support to Microsoft’s buyout.

As Google has always tried to keep Yahoo independent from Microsoft ,”I am happy to be helping them to stay independent”,Google co-founder Sergey Brin said.

Although Yahoo is considering both the deals fairly, Microsoft can still go all-guns-blazing is they consider Yahoo’s demand of $37 per share.