Google Yahoo! Want to Master the Core Business

 Google has spoken with at least two private equity firms about the potential financing to buy Yahoo's core business. Google and prospective partners that has conducted the initial stages of discussion, but no formal proposals. As written the Wall Street Journal, Google is doing this to have ownership of shares owned by Microsoft.

According to observations eMarketer, Google is the number one player in a web search, but weak in display advertising. In the United States, Facebook is expected to generate more than 2 billion U.S. in net revenue from display advertising in 2011 and Yahoo following the U.S. produces 1.6 billion. Google estimated that only produce 1.1 billion U.S..

To that end, Google wants to sell advertising space on the Yahoo site. Such as graphics, interactive, and video ads. This business is estimated to potentially generate 2 billion U.S. per year. Industry experts said Yahoo's ad space is "undermonetized," which means it can make more money if Yahoo! invested more in the technology. This is what Google wants to get in behind the investment opportunities.

Yahoo actually want to do again partnering with Microsoft, AOL, and other publishers of online content to create advertising space together to create a market for challenging competitors, DoubleClik, owned by Google. In addition, Yahoo also has a working relationship with the owners of premium content such as ABC News, which provides video content.

Google saw the opportunity to embrace Yahoo's 700 million visitors to be able to use social networking Google Plus is being developed this year. Google executives have contacted Yahoo executives about the relationship of cooperation, but until now there has been no development of the results of the meeting.

(wall street journal)