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Microsoft offers to buy Yahoo--again

In the world of Internet search there are three main players: Microsoft, Yahoo and Google. While Google excels, the other two members of the big three are seeing their market share drop and Yahoo is having serious financial woes.

According to MSNBC, Microsoft sees this as the perfect chance to buy the floundering Yahoo property and gain some ground on the 600-pound search gorilla Google. Microsoft made an offer to purchase Yahoo for $44.6 billion and according to some the purchase could be a boon for the entire technology market. The Microsoft offer raised Yahoo stock prices by 54%.

The Microsoft offer places a 62% premium on the Yahoo stock closing price from Tuesday and the 52 week high for Yahoo stock was $34.08 in October. MSNBC reports that Microsoft offered to buy Yahoo last year and CEO Ballmer sent a letter to the Yahoo board. The Yahoo board at the time declined the offer. Ballmer told MSNBC, “According to that letter, the principal reason for this view was the Yahoo board's confidence in the "potential upside" if management successfully executed on a reformulated strategy based on certain operational initiatives, such as Project Panama, and a significant organizational realignment.”

According to sources, shareholders of Yahoo could choose cash or stock in the form of Microsoft common shares. The total purchase of Yahoo would be made with 50% cash and 50% stock. Microsoft is reported to expect a $1 billion cost savings from the merger and says it will offer significant retention packages to key Yahoo employees, engineers and managers.

Yahoo is in the process of restructuring its online business and announced earlier this month that it would be making big changes to gain market share. Part of the big changes Yahoo made was to cut jobs in an effort to cut expenses.

DailyTech reported that rumors were circulating that Yahoo could potentially lay off as many as 2,000 workers -- a figure an insider denied saying the actual number of jobs likely to be lost was more in the hundreds. A few days after the company insider said job cuts in the hundreds, Yahoo cut 1,000 jobs and announced its profits had fell by 23%.



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RE: Merge
By Trisagion on 2/1/2008 10:38:20 AM , Rating: 2
Um, unlikely. Google, I'm sure has more than 60% of market share as is. The merger is not going to bring anything new to search. I quite frankly don't know anyone who uses MSN or Yahoo as their primary search.


RE: Merge
By omnicronx on 2/1/2008 10:43:36 AM , Rating: 2
quote:
I quite frankly don't know anyone who uses MSN or Yahoo as their primary search.
You obviously do not know a lot of people. Msn Search although terrible, is used by a number of people as it is the default search tool of Internet Explorer.


RE: Merge
By Denigrate on 2/1/2008 10:46:55 AM , Rating: 5
Only the short bus riders who don't change the default search engine to Google.


RE: Merge
By omnicronx on 2/1/2008 11:49:02 AM , Rating: 5
Exactly my point, half the people out there do not know what they are doing.


RE: Merge
By GaryJohnson on 2/1/2008 10:55:45 AM , Rating: 2
Most of the statistics I can find around the web, like the one below, show google to have a 75-80% share at the moment.

http://marketshare.hitslink.com/report.aspx?qprid=...


RE: Merge
By Oroka on 2/1/2008 11:40:57 AM , Rating: 2
Which is just oblivious people rather than real customers. If you are not computer 'saavy' and you use windows, then you proably use MSN for your search.

When I build systems fo people, I test most of the features, and usually when I fire up IE7 first thing I do is change the default search to Google. It is just better.


RE: Merge
By Snuffalufagus on 2/1/2008 2:33:06 PM , Rating: 2
so essentially you are taking away the choice they would have if you allowed them to launch IE for the first time on their own.


RE: Merge
By jtesoro on 2/2/2008 12:50:36 AM , Rating: 1
Choice was not taken away there. The end user will eventually fire up IE for the first time on their own. And they still have the choice of switching to whatever search engine they want.


RE: Merge
By FITCamaro on 2/1/2008 10:53:22 AM , Rating: 2
Actually at work my mom rarely uses Google. She's a pharmacist and I guess their search isn't great for finding info on drugs and other things pertaining to her job. I think she uses Yahoo.


RE: Merge
By jtesoro on 2/1/2008 11:16:29 AM , Rating: 2
I use Scroogle, which is actually Google. Without the cookies... without the ads... without the tracking.


RE: Merge
By Spivonious on 2/1/2008 1:53:33 PM , Rating: 2
I'm pretty sure the tracking is internal to Google, so anything that uses Google will also have the tracking.

As far as not having the cookies, just block them.


RE: Merge
By jtesoro on 2/2/2008 1:01:03 AM , Rating: 2
Well, if Scroogle is to be believed, Google won't even be able to see my I.P. address. All searches will seem to emanate from Scroogle servers, so a search can't be tied to a single individual. Regular deletion of logs and Google cookies on Scroogle servers further removes any association between a search and an individual PC.


RE: Merge
By Malhavoc on 2/1/2008 11:35:09 AM , Rating: 2
Google Scholar is a little more useful than default engine for such things. Add in Google Books and even better. I've not used Yahoo much since the days of Infoseek, when both had their purpose for me (one search engine, one directory).

Perhaps I should check it out again, but I see all the annoying crap other than the search engine on the page and I can't take it seriously.


RE: Merge
By rudy on 2/2/2008 2:26:27 AM , Rating: 2
Finally someone else who feels the way I do. Google was good when it started because most of its users were more inclined. Now that it has become the search engine of the masses it has gone down hill. This is because it factors in what people are looking for and clicking on to rank searches. When everyone started using the internet they swayed that to the crap they were looking at and more people where trying to exploit ranking as well. The good old just match up the words you are looking for works better now IMO.


"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation

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