Marketers waiting to cash in on the Yahoo-Microsoft tie-up will need to wait a bit longer: The two companies missed a self-imposed Oct. 27 deadline to finalize details for the search and advertising deal they announced this summer.
Though no new timeline was given, the missed deadline may simply be because of the complex nature of the deal and the tremendous amount of paperwork that it requires.
Big, Complex Deal
In an 8-K filing made with the US Securities and Exchange Commission (SEC), the companies explained they needed more time. "Given the complex nature of the transaction, there remain some details to be finalized," Yahoo said in the filing.
"The parties are working diligently on finalizing the agreements, have made good progress to date, and have agreed to execute the agreements as expeditiously as possible," it said.
Inside, Not Outside, Delay
The delay is ironic, given that the industry had expected an external hold-up from the Justice Department's (DOJ) antitrust review of the deal. Earlier this month, the American Association of Advertising Agencies urged the DOJ to speed up the process and approve the deal.
So what does the delay mean for the anti trust review and ultimately a closed deal? As SeekingAlpha put it, it "isn’t a big deal and shouldn’t affect the regulatory approval timeline (although it can’t help), but it does show how hard it is to get a big complex deal like this done."
Overwhelmed with Paperwork?
Most industry watchers believe that if there were anything more serious behind the hold up, it would have been mentioned in the SEC filing.
"Microsoft and Yahoo might be holding some quiet discussions with regulators in order to make sure they get things right on the first try," writes WebProNews."Or maybe, considering that this is a 10-year deal, both sides' lawyers have just gotten a little overwhelmed with paperwork."