Microsoft to Acquire Yahoo?
Rumours are circulating that Microsoft are looking in to acquiring Yahoo, and if it’s true the deal will be huge. There is an estimated pricetag for Yahoo of $50 billion (according to Wall Street analysts), which will make it one of the largest acquisitions in the USA.
Apparently Microsoft and Yahoo have spoken in the past, but Google has piled on the pressure with the DoubleClick deal and now Microsoft has asked Yahoo to re-enter talks about the acquisition.
Look at it from this point of view; Yahoo has had much more success on the web than Microsoft, and Google increasingly looks to challenge Microsoft with online office apps. There’s search, too - the two companies combined would command 27% of the search market against Google’s 65%. And of course there’s advertising, where Google is also dominant and Yahoo is building out Panama.
Is this a good or bad idea? In fairness, Microsoft could provide a powerful challenger to Google’s web dominance if the deal goes through, but if it does it would be the deal of the century!
Article adapted from: http://mashable.com/2007/05/04/microsoft-yahoo/
RSS Feed
