By Paul McDougall
October 14, 2010
Shares of Yahoo were up more than 12% in pre-market trading Thursday following a report the Internet portal may be bought out by a consortium of investors that includes AOL.
The Wall Street Journal, citing unnamed individuals said to be familiar with the plan, reported that Silver Lake Partners and Blackstone Group were among the private equity firms that could team up with AOL to buy out Yahoo.
The newspaper said the discussions were very preliminary. Yahoo and AOL have not publicly commented on the report.
Yahoo's shares, priced at $17.09 early Thursday, have been on a roller coaster for the past couple of years as the company engaged in an on-again, off-again courtship with Microsoft. Microsoft made several attempts to purchase Yahoo outright, but ended up striking a partnership with the company.
Under the ten-year pact, announced in July, 2009, Microsoft has placed its Bing search engine on all Yahoo sites and, initially, keeps 12% of the revenue from Yahoo-driven searches. Yahoo is handling sales and marketing for premium search ads for both its properties and Microsoft's.
Yahoo can terminate the arrangement if search traffic generated by the alliance falls below a specified percentage of rival Google's traffic. Yahoo also retains the right to expand the partnership by adding Microsoft's mapping and mobile search services to its Web properties.
One complication of any deal involving Yahoo and AOL is that AOL's search tools are in part powered by Microsoft rival Google. One possibility is that AOL could also turn to Microsoft's Bing search engine if it ties up with Yahoo.
Microsoft, Yahoo, and AOL would together control about 30% of the U.S. search market, compared to Google's 65.4% stake, according to the latest figures from market watcher Comscore.
Learn more about Search Engine Optimization, the most effective form of online advertising.
Search Engine Marketing is the fastest growing advertising medium in the world, projected to become 10x more powerful and influential than traditional media outlets such as: network television, cable television, local television, network radio, local radio, satellite radio, national newspapers, local newspapers, magazines, billboards, direct mail, telemarketing and more.
Discover the most powerful and effective form of advertising, Search Engine Optimization.
An aside for consideration are the segments of Search Engine Optimization. Clarification is required in terms of paid search marketing, sponsored search advertising, pay per click, email marketing (spam), and the foundation of strategic internet marketing: Organic Search Engine Optimization - Organic SEO in some circles also referred to as Natural Search Engine Optimization - Natural SEO.
Key Organic Search Engine Optimization Facts:
- Keyword search is the 2nd most popular online activity, rapidly approaching the popularity of email retrieval.
- 90% of all new website visitors are delivered by a major search engine and/or directory.
- 98% of all keyword search activity results are powered by the big 4 search engines: Google, Yahoo, MSN and AOL.
- Keyword search results on Google, Yahoo, MSN and AOL are all determined by a search engine spider and/or robot crawler.
- Recent internet marketing studies confirm that keyword searchers prefer the organic results at a 6 to 1 ratio vs. pay-per-click sponsored search advertising listings.
Is your corporate website being found early and often on the keywords and keyword phrases that best describe your products, services and industry?
Harness the power that our proven organic search engine optimization technologies can provide...
Contact the Peak Positions Organic SEO consulting specialists today.
Learn more about our client roster, one of the strongest in the SEO industry, and more importantly discover why our client-focused Organic Search Engine Optimization company maintains the highest client retention rate in the SEO industry.
"Our year over year order anniversary flowers revenues are climbing rapidly in a timid economy. If you are looking for an excellent SEO Company, we suggest Peak Positions" ...
SEO Case Study