Why did Yahoo pick Google over Microsoft?

So, Google and Yahoo are now officially “an item!” The question now is; “why did Yahoo reject Microsoft, yet accept a partnership with their arch rival Google?”
Microsoft’s offer
We now know what Yahoo were offered from Microsoft! In a letter to Microsoft employees yesterday, Kevin Johnson, president of Microsoft’s platforms and services division, outlined what Yahoo were offered.
Here’s a direct quote (including some odd punctuation);
“1. Microsoft would have invested $8 billion in Yahoo! at $35/share;
2. Microsoft would have purchased Yahoo!’s search assets for $1 billion, and assumed the operations and R&D expense while returning data back to Yahoo! for use in their advertising business; and
3. Microsoft and Yahoo! would have entered into a long-term search partnership, where Microsoft would have provided favorable economics to Yahoo! search, including a three-year guarantee of higher monetization than Yahoo!’s Panama paid search system currently provides.”
This offer sounds more attractive than the Google deal; Microsoft’s offer would also have added approximately a quarter of a billion dollars MORE to Yahoo’s operating profits. As I blogged previously, Bill Gates is now going to remain a part of Microsoft’s attempt to ‘build the world’s best search!’
A Google Internet?
I saw a quote this morning that asked; “Are we being led blindly toward a Google-Internet?” This got me thinking, because I have definitely noticed that Google are now finally starting to get some negative publicity.
After years of being regarded as ‘the peoples friend’ it seems many are now suspicious of Google’s growing online dominance.
The Internet is driven and directed by search and Google now ‘all-but own’ the search market. I think it’s easy to see why questions are being asked about the power Google now has – and perhaps more worryingly - the power Google are about to have!