Some people are hearing the death knells toll for Yahoo!, recently beleaguered as Google walked away from an advertising partnership between the two search giants. Google walked away because the US Department of Justice vowed to file an antitrust lawsuit to block the deal.
Some analysts were saying that Yahoo! was counting on the deal to maintain a viable financial position to operate independently. But with this latest setback, the roof could now be caving on what was once considered the “IT” company of the Internet age. What Yahoo is looking at now are getting itself bought by spurned buyer Microsoft, or being gobbled up by TimeWarner’s AOL unit. If Yahoo goes for Microsoft, expect their selling price to be significantly lower than Microsoft’s initial offer of $44.6 billion.
Either way, Yahoo! is now in a precarious position. Unless a miracle deal happens, Yahoo! as we know it won’t be here in two years.