Yahoo Puts All The Chips On The Table. Time For Somebody To Fold: "Citigroup analyst Mark Mahaney previously said that a Yahoo-Google search deal could boost cash flows by 25%. Experts we talked to estimated that could boost Yahoo’s market valuation by $7 billion or so, less than half the premium Microsoft offered on February 1.
That Mahaney estimate of increased cash flow from a Yahoo-Google deal is now “more than $1 billion a year,” a 50% gain in cash flow from 2007. That puts the offers roughly on par, give or take a few billion. And it gives Yahoo a potentially viable alternative to the Microsoft deal."
You've probably lost interest by now in the Yahoo-Microsoft-AOL-Google dealings (if you were following it at all), but here's an interesting projection - look at the financial estimates of increased revenue of Yahoo outsourcing their search advertising to Google - 25%...50%...100%... that's how much better everyone thinks Google does search advertising than the rest of the market - give them your inventory, and you will make your money back in multiples. Personally, I hope no one buys or merges with Yahoo- its more fun to have several players in the market vying for market share, more products come out, more interesting moves get made. Now Yahoo and AOL just have to start committing to some of their products, improving and supporting them, and we'll be getting somewhere.