RSS
Yahoo To Pay Google $250 Million Break Up Fee
By Daya Baran at June 13, 2008 0 Comments
I am puzzled, was Yahoo in such dire straits that they could not negotiate a better deal? Yahoo has agreed to pay Google a break up fee of $250 million if the partnership falls apart within the first two years.
If the Services Agreement is terminated by either party within 24 months … Yahoo! is required to pay to Google the sum of $250,000,000…
Under the proposed deal Yahoo anticipates on making $250 million to $450 million in operating cash flow in the first 12 months following implementation. On a profit basis Yahoo could probably be even losing money.
Not only is Yahoo in a position to lose money but in 2 years its search advertising business will be obliterated by Google, Yahoo would have become dependent on Google for its search advertising and in the process handed Google a multi billion dollar monopoly.
Labels: Advertising, Search, Yahoo
