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Microsoft Yahoo Merger

February 12, 2008

There is lot of speculation and news on Microsoft take over of Yahoo!!.

But how this deal will matter to Yahoo, MS or Google in terms of their position in online advertising business.

Yahoo! By looking at Yahoo’s recent bid rejection press release; Yahoo is trying to avoid the deal rather than having a close look at the takeover offer from MS. The counter bid that Yahoo proposed is not realistic for MS and the takeover now costs close to $52 billion. One thing is for sure that it would be a win-win situation for MS and Yahoo if merger happens. Yahoo might be having over 500 million user base; but how good it is using the user base in terms of online advertising. According to Forbe’s the online advertising business is estimated at $45 billion dollars for 2007 and it is expected to grow to $75 billions by 2010. So where is Yahoo placed in terms of holding the major share of online advertising revenues; definitely far behind Google.

Microsoft! The biggest disappointment of Yahoo’s recent rejection is Microsoft. MS needs company with huge user base and great brand name and Yahoo perfectly fits in MS’s wish list. I guess if merger fructifies the combined MS-Yahoo is going to give a very stiff competition to Google in online advertising space. With Windows+Office+IE+Yahoo+MSN+Messenger’s a wonderfully dream combination for MS to rule PC and internet space. But the business merger is never so easy; as there are lots of redundant business running on each sides. It is going to be a great challenge for both of them to design a solution by not majorily affecting or sacrificing each of their core strengths.
Then where should Microsoft go from here I guess may be it can have a look at e-bay, amazon, Apple(very expensive one) ; well how about Nokia the very best way for MS to get into mobile space. Afterall Windows+IE+Office+Mac+Ipod+e-bay is also an extremely deadly combination.

Google: Well the winner of the whole show is Google and things really worked out very well. Google convinced and gathered good support by its argument that “closedness of internet & technology if MS takes over Yahoo!”.

But one question really bothers me is that: Is MS really the bad boy of the openness and the internet??


From → tech

  1. Yo, I find your blog truly informative and would only say WOw. Some information, I would like to find more precisely. If you are withholding information about this contribution did, it would really fond of you, tell me this.

  2. Thanks for good words.. well the merger topic is a hottest on the internet so there is no with holding of information.. but I am suspecting lot of twists and turns in days to come on the merger?? what u say?

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