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intelliot
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 Posted: Fri Jul 30, 2004 12:24 am Post subject: Yahoo demands more Google shares in dispute over deal |
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| Quote: | YAHOO! Inc is demanding a larger stake in Google Inc, the most-used Web search engine, in a dispute over a 2000 contract under which Google's technology was featured on Yahoo's home page.
Google said in a filing with the US Securities and Exchange Commission on Monday that it is in talks to settle a dispute over a grant of options it issued in a 'branding and promotion' contract with an unidentified company. A Yahoo spokeswoman confirmed that her company is the one referred to in the Google filing.
The agreement benefited Google by exposing users of Yahoo, more than 145 million people a month at the time, to the smaller company. Now Yahoo stands to benefit from Google's plan for an initial public offering of 24.6 million shares at between US$108 and US$135. Yahoo holds 5.5 million Google shares that may be worth at least US$594 million in the IPO.
Yahoo developed its own search engine and stopped offering Google's earlier this year as the two companies competed for users and advertisers.
Google said the holder of the options in dispute received 1.23 million shares last year. Those could be worth at least US$132.8 million after Google sells shares to the public. Google said there's a 'reasonable possibility' that it might have to record a charge against earnings that would be 'material' to its results later this year. |
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cvrk3
Google Guru
Joined: 05 Jul 2004
Location: India
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| Posted: Fri Jul 30, 2004 2:43 am Post subject: |
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This I term as having the cake and eat it too  |
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tokkolo
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| Posted: Tue Aug 10, 2004 1:18 am Post subject: |
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| usatoday.com wrote: | Google to give Yahoo stock to settle legal dispute
By Jefferson Graham, USA TODAY
Internet search giant Google will give rival Yahoo stock potentially worth more than $300 million to settle a long-standing patent lawsuit, the companies said Monday.
The settlement removes what was seen as a minor legal impediment to Google's upcoming and controversial initial public offering.
The dispute concerns patents for online advertising technology. Yahoo subsidiary Overture Services, formerly known as Goto.com, in 2000 began offering text-based ads that pop up next to search results. Google's similar AdWords program began in 2001.
Google has 150,000 customers using AdWords, which generated the lion's share of the company's $962 million in revenue in 2003. Yahoo says it has more than 100,000 Overture customers. Its 2003 revenue was $1.6 billion.
Under terms of the settlement, Overture will license certain patents to Google, and in return, Google will pay for them with 2.7 million shares of stock. The payment also resolves a dispute about how much Yahoo is owed under an old partnership between the two that ended in February, when Yahoo dumped Google in favor of its own search technology.
American Technology Research analyst Mark Mahaney calls the swap a "minor positive" for both companies. "For Google, the patent dispute was something that could have gone on for years," he says. "Now, one unknown legal risk is removed. For Yahoo, they get extra shares."
The settlement is worth about $328 million, based on the midpoint in the $108-to-$135-per- share range that Google has established for its highly anticipated initial public offering.
Google has been suffering from lower expectations in recent days. Investor response to the planned IPO isn't living up to the hype.
"Internet stocks are down 20% since July," Mahaney says. "People look at Google in relation to Yahoo as a benchmark, and Yahoo stock is off 25% in the last month. So if Yahoo has come down dramatically, they think Google should be, as well."
Google still expects to complete the IPO later this month, according to documents filed Monday. The company hasn't set a specific date; many expected it to come this week.
Google is the most widely used search engine, used for 49% of all searches, according to May data compiled by Internet measurement firm comScore Media Metrix. Yahoo is next with 26.6%, followed by Microsoft's MSN at 14.5%.
Accounting for the settlement will saddle Google with a loss for the current quarter ending in September. Google warned it will absorb a charge of $260 million to $290 million, but didn't quantify the magnitude of the projected loss. Google earned $20.4 million during last year's third quarter.
Contributing: The Associated Press |
source:www.usatoday.com |
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cvrk3
Google Guru
Joined: 05 Jul 2004
Location: India
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| Posted: Tue Aug 10, 2004 5:07 am Post subject: |
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| when the fruit is ripe, everyone will demand their share!! |
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Ashley
Master Googler
Joined: 10 Aug 2004
Location: Europe
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| Posted: Tue Aug 10, 2004 5:28 am Post subject: |
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Has this got something to do with google creating illegal shares? Im might just be confused here? *scratches head primitively*
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reciprocal_link
Junior Googler
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| Posted: Sun Nov 14, 2004 7:09 pm Post subject: |
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I thought that google and yahoo were the same company.. I mean they are so linked together that I had no idea until I read the post about google.com's stock report and yahoo getting shares.
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tokkolo
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Joined: 13 Jul 2004
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| Posted: Mon Nov 15, 2004 2:16 am Post subject: |
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Reciprocal_link thank you for letting us know that. But have you noticed that this topic (and the last reply) is more than 3 months old? Please don't reply to old topics unless you have new information about that topic.
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