Will Google Try To Stop The Microsoft-Yahoo Deal?

Microsoft's chief exec warns Google will try to block the search deal between the companies, and also that some layoffs will ensue.

Now the search deal between Microsoft and Yahoo has been signed, the fallout begins.

In a conference call that also featured Yahoo head Carol Bartz, Microsoft chief executive Steve Ballmer warned that Google is likely to try and block the partnership as the deal is scrutinized by lawmakers. He said:

"We suspect we will face opposition from the competitor [Google]. The case of us coming together will provide more competition, not less. [However] we expect our competitor to be aggressive."

The companies plan on filing the deal document next week with anti-trust authorities in both the US, EU, and elsewhere, next week, with the aim of being able to close the deal early in 2010.

The plan would see Yahoo’s search appearing “as powered by Bing” some three to six months after the deal closure, with total global integration in about two years.

While some Yahoo search employees would move to Microsoft, and others to Yahoo’s display ad division, there would be layoffs, Bartz warned, which would likely occur over the next two-and-a-half years.

A Google spokesman responded:

"There has traditionally been a lot of competition online, and our experience is that competition brings about great things for users. We’re interested to learn more about the deal."