Yahoo to give up to buy AOL

Media, the Internet analyst at JP Morgan Chase Han Ai Muke (Imran Khan) Wednesday investors in the report that Yahoo's predicament should carefully consider the merger with Microsoft.
Khan in the report pointed out that if the Justice Department ultimately rejected the Google and Yahoo's search advertising deal, Yahoo should seriously consider the issue of cooperation with Microsoft, rather than focusing on acquisitions to consider America Online (AOL). Yahoo in mid-June this year, with Google signed a non-exclusive search advertising agreement. According to the agreement, Yahoo will be the main site and the United States and Canada co-operation of the site search results put Google ads, Google ads Yahoo has the right to decide the specific location and put in the way. Yahoo expects the deal each year about 800,000,000 U.S. dollars for its revenue. As the United States and its region is facing strong opposition from the advertising group, the Justice Department to intervene and review, Yahoo and Google this month to postpone the proposed advertising deal.
Khan said that in the past few months, Yahoo's search business growth "very healthy" but the company's share price led to the decline in market value have been falling, and growth in the search business is not sustainable, may lead to Yahoo's search share Ultimately continue to decline. Khan is expected that if the Yahoo search business will be outsourced to Microsoft, the company can make an annual increase of 725,000,000 U.S. dollars of revenue, and save about 14 billion dollars in costs.
Wednesday the market, there is news that Yahoo is currently being from the same period Warner's America Online, held secret talks. It is reported that the two sides to talk about the current focus is to calculate the combined company after the profit will be, as well as to cost savings. But the technology news Web site AllThingsD.com It is reported that if the Ministry of Justice to stop the Yahoo deal with Google, which will force Yahoo to reconsider a number of other cooperation projects with the cooperation of Microsoft and America Online to be much better than that.
U.S. investment firm Cowen analyst Jimufuli Kydland (Jim Friedland) said that Yahoo may eventually lead to all or only sold to Microsoft's search business. Friedlander pointed out that Yahoo does not need "a fair price to sell itself out." Friedlander said the weak economy by the impact of Yahoo's display advertising business in the future will be affected. Friedlander also emphasized that Yahoo currently has 3,300,000,000 U.S. dollars in cash and no debt, the company's free cash flow in 2009 is expected to reach 1,000,000,000 U.S. dollars.
Yahoo Wednesday on the Nasdaq stock market transactions of conventional at 12.14 U.S. dollars, representing close down 0.22 U.S. dollars, a decrease of 1.78 percent. In after-hours trading, Yahoo shares rose 0.07 U.S. dollars, or 0.58% , To close at 12.21 U.S. dollars. Over the past 52 weeks, Yahoo's stock price as low as 11.25 U.S. dollars, up to 32.37 U.S. dollars.