Yahoo is still floundering from its confrontation with Microsoft and is counting on a spike in revenue generated by using Google’s technology for serving ads. The deal is on hold though while government regulators determine how it will affect the competitive landscape. Citing lost revenue every day the agreement is delayed, Google has had enough and plans to seal the deal without a governmental blessing.

Google has already voluntarily delayed the deal by three months with the hopes that antitrust regulators would be able to make their decision within that timeframe, according to the Associated Press. Microsoft and others have raised concerns that by joining forces, Google and Yahoo would control over 80% of the expanding search engine market in the United States.

Microsoft isn’t waiting idly while the government reviews this deal, it’s busy integrating search engine technology from PowerSet into its Live search portal. And, in the hyperfast world of the Internet, every moment Google’s ad serving technology is held hostage by regulators translates directly into lost dollars.

Google has expressed frustration that regulators aren’t communicating an opinion either way, CEO Eric Schmidt says “while we have been talking to regulators, we don’t know what their position is. We don’t know if they think it’s a good deal or poor deal.” The company also believes the review is primarily the result of lobbying on the part of Microsoft.

Some Yahoo shareholders are angry that the company walked away from a buyout by Microsoft, and they’re demanding results. Microsoft’s last offer was for $47.5 billion, $33 per share but Chief Executive Jerry Yang decided to hold out for $37 per share. That caused Microsoft to drop the offer and Yahoo has been limping along ever since.

It’s disheartening to see one of the Internet’s original pioneers struggling to survive, and Google expressed a similar sentiment when it mentioned Yahoo’s critical role in convincing the original team members to form their own company.

Here’s hoping that as Google continues to grow, it also continues to do good.

Related:

Entry was posted on Thursday, September 18th, 2008 at 8:29 pm under Google, Internet, Microsoft.

Read more entries by Matt Jansen.
Stumble It!