Skip navigation
Watchlist Sponsored By :

Current DateTime: 01:01:39 14 Oct 2008
LinksList Documentid: 24355697

Current DateTime: 01:02:40 14 Oct 2008
LinksList Documentid: 24890560
  • Risk & You

      It's a risky world out there. Whether it's investment or retirement, career or home you can take steps to lower your risk profile.

  • Wall Street In Crisis

      With shock after shock to the world's financial system, the credit crunch continues to drive a major reconfiguration of the Wall Street landscape.

  • Protecting Your Portfolio

      Credit Crunch. Recession. Bear Market. There's a triple threat out there for investors. Here's a guide to managing your money.

Justice 'Interested' in Microsoft-Yahoo Bid Review
By Reuters | 01 Feb 2008 | 01:03 PM ET
Text Size

The Justice Department on Friday said it is "interested" in reviewing antitrust issues associated with Microsoft's nearly $45 billion unsolicited bid for Yahoo.

  Complete Coverage:

If the deal goes through, analysts expect scrutiny from Congress, Justice and other enforcement agencies, but they say any concerns about search engine or online advertising market power may not be significant enough to stop the transaction.

Microsoft
"The antitrust division would be interested in looking at the competitive effects of the transaction," said Justice Department spokeswoman Gina Talamona.

A spokesman from the Federal Trade Commission, which in December approved Google's $3.1 billion purchase of online advertising company DoubleClick, declined to comment. That deal still faces antitrust scrutiny in Europe.

Keith Hylton, a professor of antitrust law at Boston University, said Google's success in online search and advertising means a combined Microsoft-Yahoo would have significant competition.

"The fact that Google dominates this business will be a big factor in their (Microsoft's) favor in trying to get this approved by the regulators," Hylton said.

A federal judge this week extended by 18 months court oversight of Microsoft's market power, which began in 2002 after a landmark antitrust settlement. Hylton said Justice has been relatively lenient with Microsoft, compared to state attorneys general. It was a group of states that pushed for the extension of court oversight of the software giant, while Justice officials said the 2002 antitrust settlement had largely served its purpose and should expire.

"If this deal goes through, there will be a lot of very close scrutiny ... there appears to be lots of overlap," said Harry First, a professor at New York University's School of Law. "It's complicated and very big, and a lot of enforcement agencies will be interested."

Sen. Herb Kohl, D-Wis., chairman of the Senate antitrust subcommittee, said the same issues that prompted lawmakers to review the Google-DoubleClick deal exist in a potential Microsoft-Yahoo combination, including examining how it affects consumers, advertisers and businesses "who increasingly use the Internet for their news, commerce and entertainment."

If Yahoo accepts Microsoft's offer, the subcommittee expects to hold hearings to "explore the competitive and privacy implications of the deal," Kohl said.

Shares of Yahoo [YHOO  Loading...      ()   ] added $8.67, or 45 percent, to $27.85 in morning trading, while Microsoft [MSFT  Loading...      ()   ]fell $1.88, or 5.8 percent, to $30.72.

Copyright 2008 Reuters. Click for restrictions.

HOME  |  NEWS  |  MARKETS  |  EARNINGS  |  INVESTING  |  VIDEO  |  CNBC TV  |  CNBC PLUS  |  CNBC MOBILE  |  CNBC HD+
About CNBC   |   Site Map   |   Privacy Policy   |   Terms of Service   |   Advertise   |   Help   |   Feedback   |   Video Reprints
  Data is a real-time snapshot   *Data is delayed at least 15 minutes

Global Business and Financial News, Stock Quotes, and Market Data and Analysis