In a slightly surprising move, Yahoo has acquired Inktomi for not very much money. Inktomi, of course, used to provide search services for Yahoo, but lost that contract to Google a few years ago. It would seem that this deal would put Google's Yahoo relationship at risk as well. Of course, if Yahoo did ditch Google for Inktomi, it would be a mistake, since Inktomi's search is much weaker than Google's, and users might revolt. Now, the final purchase price is $235 million, but just three months ago, Inktomi was forced to purchase the building they are housed in (though, it's mostly empty) for over $100 million - so I wonder how that gets sorted out in the deal. Inktomi, also has two (very nice looking) buildings down the street from me, that they built in the past two years that are completely unoccupied. I'm sure Yahoo will help them get out of that lease, as wel, but I wonder how much of the purchase price goes to that.
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