Microsoft + Yahoo! = ?

Written by Ph@ntoM on February 3, 2008 – 2:00 pm -


I believe many readers had read about the news where software giant, Microsoft plans to buy one of the search engine pioneers, Yahoo! Actually both companies had came close once before but due to various circumstances, they didn’t managed to get “together”… But now, Microsoft is offering USD44.6 billion offer for Yahoo! Inc and they think it is the right time to acquire the search engine giant in order to slice into the domination of Google’s online advertising market. It is to say that, this would be the biggest deal to be done in the IT industry history, if Microsoft successes.

Yahoo!

Looking into both companies, we would see that both giants offer similar services to customers. Don’t forget that Microsoft launched Windows Live services not long ago and if the deal strikes, it could result mergers of lots of services between the two companies. One of the focus would be Yahoo! Mail and Microsoft’s Hotmail or Live mail services. They might retain but might also integrate into one unified interface to be used. Yahoo Search and Live Search, hmm… Yahoo do dominates larger search market compared to Live Search…but who knows how Microsoft will do? Maybe utilize Yahoo!’s expetise to boost their search engine? Also, both companies offer Instant Messaging services with MSN and Yahoo Messenger respectively. Yahoo Messenger IM merges into Windows Live Messenger platform? Wow… then we could see who’s really the Instant Messaging giant… Not forget about their advertising arm… which would be the company’s profit generating engine… and of course Microsoft would try to implement theirs since Yahoo had done quite badly in this sector, losing to their arch-rivals, Google.

Microsoft Windows Live

Another benefit for Microsoft will be Yahoo!’s wide array of existences in countries around the globe as this would help to enlarge the company’s exposure and most importantly, advertising and marketing dominance! From many people’s view, this acquisition deal would cause quite a threat to Google of course. Maybe Google will start to worry and pumping in lots of efforts to roll out more wacky yet innovative services in order to regain their momentum. So, let’s see…

Sources extracted from TechCrunch and LowYat.net.

*Update*

Looks like Google and Microsoft had started war of words on Microsoft’s intention to buy Yahoo!

Google claimed that this move will cause unfairness in terms of competition within the Internet sector… just like what Microsoft dominated most of the PC market’s OS and web browser. Don’t forget that both Microsoft and Yahoo owns a very large proportion of free mail users! (Hotmail and Yahoo! Mail) and IM users (MSN and Yahoo! Messenger). No wonder Google is concerned with this.

However, Microsoft responded that Google “dominated” the search engine as well as online advertising markets. They claimed that they will assure oppenness, innovation, and the protection of privacy on the Internet while on the meanwhile compete fairly with Google. Looks like both parties has their own opinions… but how could this turmoil ends? What will Google come out as a strategy to overcome this? That will be very interesting…

Sources extracted from TechCrunch.

*More Updates*

Yahoo! considering collaboration or alliance with it’s arch rival, Google! Looks like it’s getting more and more interesting… Some says it’s to scare Microsoft away… Some say it’s a strategy to increase Microsoft’s bid… So, what’s next?

The Final Decision?

Oh well, Yahoo!’s board rejected the bid offer from Microsoft… This may be expected by the public since it could be a turmoil growing bigger and bigger… Maybe this is a good decision for Yahoo!, Google, and Microsoft. Microsoft could increase their bid and would benefit Yahoo!’s shareholders… For Google, it could take a breath a while by the nervous acquisition case which could threaten them. For Microsoft, this may avoid antitrust regulators which could cause them quite a lot of trouble. But anyway, it is still depends on how Yahoo! thinks to rescue themselves out of the storm…


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