While Yahoo (YHOO) shares slid lower today as the market reflected on the uneventful conclusion of the company’s merger talks with Microsoft (MSFT) and its decision to share advertising and internet searches with Google (GOOG), the Yahoo-Google deal could still be unravelled after the chairman of an anti-cartel Senate committee in Washington pledged to launch an investigation into the transaction.
According to Timesonline – Herb Kohl, the chairman of the Senate sub-committee on antitrust, competition policy and consumer rights, said:
“The consequences for advertisers and consumers could be far-reaching and warrant careful review, and we plan to investigate the competitive and privacy implications of this deal.”
Mr Kohl’s comments will come as a blow to the internet companies. Yahoo! and Google on Thursday said that they did not perceive their joint venture to require regulatory approval, and they said that they had offered to delay the completion of the deal for three and a half months to allow the Department of Justice to review it.
Shares in Yahoo! sank another 5 per cent to $22.46, well below the $35 a share that Microsoft had valued the stock at only a week ago.
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