A Google-Yahoo Deal Looks More Likely Now with Microsoft Out of the Picture

(NewsVisual, powered by IntellectSpace) -- Despite the retreat of Microsoft Corp from the scene, Yahoo Inc (NASDAQ:YHOO) and its search-engine rival Google Inc (NASDAQ:GOOG) could still move ahead with a strategic alliance involving the sharing of advertising technology, according to The New York Times.

"Yahoo may well pursue the partnerships with Google, its main rival, to bolster its depressed stock price. Yahoo shares dropped 15 percent, or $4.30 Monday, to $24.37. The two companies refused to comment," The Times reported in an article on Tuesday.

The article also implies that the prospect of a Google-Yahoo deal was one of the primary reasons that Microsoft withdrew its bid for Yahoo.

There’s another dimension that makes these two search companies more likely to enter a deal:

Although Yahoo and Google are direct competitors, the two Silicon Valley-based companies do have a network of high-level personal connections that could help to make this initiative work for the benefit of both companies.

NewsVisual decided to create an IntellectSpace Knowledge Map in order to illustrate the personal connections of Yahoo’s and Google’s Board of Directors.

The Knowledge Map shows that two of Yahoo’s Directors have links to four of Google’s Directors through three organizations.

More specifically, Yahoo CEO/Director Jerry Yang is connected to Google’s Co-Founders/Co-Presidents/Directors Larry Page and Sergy Brin through Stanford University, where all three pursued advanced degrees as graduate students.

Mr Yang is also connected to Google Director John L Hennessy who is the current President of Stanford University, as well as through their board-room service to Cisco Systems Inc (NSADAQ:CSCO).

In addition, Yahoo Director Robert A Kotick is linked to Google Director L John Doerr via their board-room service to Macromedia Inc.

These erstwhile rival companies could be using this network of personal connections to rally against Microsoft’s efforts to gain a beachhead in the Silicon Valley search engine market.

Click here for a fuller and an interactive version of this IntellectSpace Knowledge Map.

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).