Analysts Cynical of Microsoft-Yahoo Deal
A Times Square news ticker flashes a headline about Microsoft above a billboard for Yahoo! on Friday, May 4, 2007 in New York. Microsoft Corp. is resuming its pursuit of search engine operator Yahoo Inc. that could help it better compete with Web search leader Google Inc., published reports said Friday. (AP Photo/Mark Lennihan)
Microsoft's $44.6B Bid for Yahoo
<p>RICH OFFER: After two years of on-and-off talks and speculation, Microsoft offers to buy Yahoo for $31 per share, or $44.6 billion.</p><p>CLASHING TITANS: Microsoft wants to challenge Google's dominance in the search-advertising industry. In recent years, Microsoft launched its own Web advertising platform and overhauled its search engine, but neither move helped close the gap with Google. Yahoo would bring in some much-needed search traffic and bulk up its display advertising business.</p><p>THE FRAY: Analysts say others might jump into the ring with competing bids for Yahoo _ including News Corp., IAC/InterActiveCorp. or Google itself.</p><p>MARKET WATCH: Microsoft posted blockbuster earnings last week, while Yahoo forecast "strong headwinds." Investors sent Yahoo's stock up 45 percent Friday on the news; Microsoft's stock sank 7 percent.</p><p>WHAT'S NEXT: Yahoo's board says it will study the offer; then, it's up to shareholders and regulators to approve.</p>Microsoft's $44.6B Bid for Yahoo
<p>RICH OFFER: After two years of on-and-off talks and speculation, Microsoft offers to buy Yahoo for $31 per share, or $44.6 billion.</p><p>CLASHING TITANS: Microsoft wants to challenge Google's dominance in the search-advertising industry. In recent years, Microsoft launched its own Web advertising platform and overhauled its search engine, but neither move helped close the gap with Google. Yahoo would bring in some much-needed search traffic and bulk up its display advertising business.</p><p>THE FRAY: Analysts say others might jump into the ring with competing bids for Yahoo _ including News Corp., IAC/InterActiveCorp. or Google itself.</p><p>MARKET WATCH: Microsoft posted blockbuster earnings last week, while Yahoo forecast "strong headwinds." Investors sent Yahoo's stock up 45 percent Friday on the news; Microsoft's stock sank 7 percent.</p><p>WHAT'S NEXT: Yahoo's board says it will study the offer; then, it's up to shareholders and regulators to approve.</p>- Enjoy this article? Help vote it up the 'Vine.
- Public Discussion (11)
Nooooooooooooooooooooooooooooooooooooooooooooooooooooooo!
I like MyYahoo email. I got rid of Hotmail for a reason!
- 5 votes
Might as well switch to Gmail...
I never liked either of the companies, so I'm alright with this. They'll never beat Google anyway.
- 8 votes
The only Yahoo! thing I use is flickr, and love my gmail. Wish my corp would switch to gmail.
I would expect that MS would not know what to do with Yahoo! once they get it. Probably bury it under layers of mind numbing management. They screwed the pooch on Vista big time, I would hate to see how they do here.
- 2 votes
Flickr will probably be ruined too.
- 2 votes
Is it sad that was my first reaction too?
I don't think Yahoo & MS are a good match, but if managed correctly (independently?) it might work.
That was my first reaction also.
I came to flickr about four months before the buyout by Yahoo! and while I was nervous at first, good things have come from the acquisition.
However, I'm afraid MS would destroy flickr.
It's a little misleading to say that Google is developing a direct competitor to Microsoft Office. Google Docs & Spreadsheets (with the the promised addition of a presentation program this summer) is an amazing tool for sharing and collaborating, but it can't replace a desktop application for formatting documents.
- 7 votes
but it can't replace a desktop application for formatting documents.
I say wait a few years - I mean, compare the internet now to how it was ten years ago, and think of how much the internet and desktop applications will gel in the next ten years. I think Microsoft knows that forces will work against indiviual copies of software for individual people .
- 1 vote
Perhaps, but it will take a while...
...meaning, the future. The article is speaking in the present.
...even as Google increases its development of Web-based software that directly competes with Microsoft's lucrative Office suite.
Currently, it doesn't really directly compete.
This would be your typical Microsoft take over:
1) Rename services . Flickr becomes Windows Live Photos, del.icio.us becomes Windows Live Favorites, Yahoo mail becomes Windows Live Mail, etc
2) Yahoo developers and project managers leave soon after the take over leaving the former Yahoo services to stagnant.
3) Microsoft will start a migration of all the back end servers to Windows/IIS/ASP.NET which will create constant outages and frustrate users
- 3 votes
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