Bill Gates, who gave up his executive responsibilities at the helm of Microsoft today, forthrightly told NBC that he doesn’t think a deal with Yahoo is likely. Coming from Bill Gates – retired or not, this comment sums up the mood at Microsoft.
Yahoo’s brazen snub has sunk in and there seem to be no delusions of even the slightest possibility of a deal now, although Icahn is still interested in the deal. Someone will soon have to don Bill Gates’ mantle and devise strategies to stymie Google’s upsurge.
Google recently shut the door on Microsoft with a major online ads deal with Yahoo. Having warded off any possible threats to its throne in the immediate future, Google can look to consolidate its gains. And consolidate it will. Mark Mahney, financial analyst at Citibank Investment Research, expects Google to earn $1 billion from display ads alone in 2009.
Currently Yahoo is the leading player in the global online display ads industry – not to be confused with search ads - worth $22 billion annually. Google will be able to trim Yahoo’s lead in 2009 by auctioning display ads space across its bouquet of prime internet properties that includes Youtube, Google Videos, Images, Maps and Finance, and DoubleClick.
The internet juggernaut has finally solved its Youtube conundrum and will start feeding video ads to the website’s legion of video buffs. Mahney anticipates $500 million in Youtube display ads sales alone in 2009.
Ace corporate raider Carl Icahn - who has been vigorously pressing upon Yahoo’s board for a deal with Microsoft - has launched his blog The Icahn Report. He might use his blog to announce his course of action in the Microsoft-Yahoo takeover saga.
Although his blog doesn't currently feature anything regarding his on-going proxy battle with Yahoo, it does have fervid posts like "Corporate Democracy is a Myth" with Carl Icahn stamped all over them. Only time - and perhaps his blog - will tell whether he still favors a deal with Microsoft or is statisfied with the recent deal between Yahoo and Google.
This week, Dave, Will, Gordon, and Jeremy listen to Will's horrid attempts at wookie noises,
send off their favorite podcast producer with a sad series of goodbyes
and tears, and talk about the ramifications of Microsoft's potential
Yahoo acquisition. All this, and a report from the Lab, answers for a
ton of reader mail questions, a shout-out to our fourth and fifth
female listeners (hi!), and Gordon's extra-saucy rant of the week!