Icahn Talks Yahoo!


As you know Carl Icahn now sits on the board of Yahoo! and we just had to ask him about a potential partnership with Google .

You can never get anything by Icahn and he told us, politely, that he didn’t want to comment on the report.

However he did tell us, “I believe that eventually Yahoo! should make a deal with Microsoft . Not to buy the company anymore but for search. We could save a fortune at Yahoo! if Microsoft would do the search for us.”

As you might have heard, earlier on Monday a report surfaced that said Yahoo! and Google had given the Justice Department a revised version of their search advertising partnership in hopes of winning antitrust approval.

The new plan cuts the agreement from 10 years to two years and limits the revenue that Yahoo can collect to 25 percent of its search revenue, the source said. The changes were earlier reported by the Wall Street Journal.

Another revision is that Google advertisers can ask not to be placed on Yahoo.

"We have been working with the Department of Justice regarding our agreement with Google and those discussions are ongoing," said Yahoo spokeswoman Tracy Schmaler in an e-mailed statement.

Google issued a similar statement. "We are not going to discuss the details of the process," spokesman Adam Kovacevich said in an e-mailed statement.

The deal, which was announced in June, is unpopular with most advertisers because Google and Yahoo dominate the U.S. Web search market. Google's market share widened to 63 percent in August, while Yahoo dropped to 19.6 percent and Microsoft slipped to 8.3 percent, according to comScore Inc.

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