Research firm lays out the consequences of alliance, while Google attempts to scupper plans

Microsoft/Yahoo deal: The fallout

Research firm MultiMedia Intelligence has said the prospective Microsoft purchase of Yahoo will cause huge implications which will be felt for the next ten years, while rival Google has begun a predictable campaign to attempt to put a stop to the takeover.

MultiMedia claims the most obvious benefit of a union between the two companies will be a greater hold on the advertising revenues generated by internet searching.

However as advances in internet TV technology, video download and mobile advertising progress, the firm has highlighted the huge foothold in these areas an alliance between the two firms would bring.

MultiMedia was clearly not alone in coming to these conclusions. Internet rival Google has been offering to assist other firms that might wish to purchase Yahoo, in a an attempt to scupper Microsoft proposed acquisition – at the same time as lobbyists in Washington prepare an attempt top block the move and chief executive Eric Schmidt rang Yahoo boss Jerry Yang to offer an alliance of its own, reported the New York Times.

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