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June 13, 2008

Microsoft Drives Yahoo into Arms of Google

Microsoft's attempt to buy Yahoo drove Yahoo into an agreement with Google to share ad revenue.  Google is, in essence, a white knight, a party that cuts a deal with a target of a hostile bid to foil the bidder.  White knights do very, very well -- they pick up valuable at a discount.  Warren Buffet's success in the 80s is strong testimony to this.  The losers?  The bidder and the target.

June 13, 2008 in Mergers & Acquisitions | Permalink

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