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Microsoft is willing to lay down $50 billion for Yahoo Inc. say reports

The search and advertising industry could change drastically over the next year if Microsoft has its way with Yahoo. In the last several weeks, it was well publicized that Microsoft and Google went head on in a bidding war for Internet advertising giant DoubleClick. Eventually, Google won and settled with DoubleClick for roughly $3.1 billion -- a sum that had analysts questioning Microsoft's true motives.

At the time of the acquisition, Microsoft had roughly $25 billion of available cash in its bank; more than double that of Google's $11.9 billion. Observing these figures, it was odd to see Microsoft back out of a deal it could easily win. "The best side to be on in a bidding war is the losing side," said legendary Wall Street tycoon Warren Buffet. Buffet is implying that the loser in a bidding war has forced the winner to over-pay for something.

Today, Forbes is reporting that Microsoft is in negotiations with Yahoo for a possible acquisition that could be worth $50 billion. According to the report, Microsoft is feeling greater pressure to compete in the online advertising space. Just recently, Yahoo announced its acquisition of online advertising firm Right Media for $680 million. While this is far from Google's $3.1 billion expense on DoubleClick, it does indicate that Yahoo is already quite a force in online advertising.

Another sticking point for Microsoft is the fact that both Google and Yahoo are ahead of the game when it comes to search. Microsoft has been playing catch up to Google and Yahoo with MSN Search, but having Yahoo under its belt would surely set the company onto a different playing field altogether.

Despite an impending deal with Yahoo, Microsoft hasn’t taken its eyes completely off the Google – DoubleClick deal. Microsoft is loudly voicing its opinion against the deal and has asked regulators to carefully monitor the acquisition.

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Has to be said
By ahkey on 5/4/2007 11:02:37 AM , Rating: 0
I know I'll get stick for this, and that there are all kinds of counter-arguments like necessary expansion but, can Microsoft not just focus on what it's good at and produce a decent OS that people will be happy to pay for?

RE: Has to be said
By BMFPitt on 5/4/2007 11:08:04 AM , Rating: 4
You make the assumption that Microsoft could make and OS that had every feature anyone could ever want, a great UI, and charge $99 for it without tons of people still complaining about it.

RE: Has to be said
By FITCamaro on 5/4/2007 11:47:15 AM , Rating: 1
While it doesn't have every possible feature anyone could ever want (what OS ever will?), in my mind they have an OS with a great UI that they charge around $99 for. It's called Windows Media Center 2005. I personally could care less about flashy interfaces. I just want an OS that works, runs stably, is reasonably secure, does what I need it to do, works with the majority of software out there, and doesn't cost a lot. Media Center achieves those needs.

The only real interests I have for Vista is the better user account implementation and user permissions and DX10. I could care less about Aeroglass as I'll likely use the classic desktop thats XP like.

RE: Has to be said
By Tewt on 5/4/2007 1:15:21 PM , Rating: 1
Since I'm in video editing I want an OS (and programs) that make good use of 4GB RAM or more. Just waiting for the other software people to keep up. Also, I would like an OS that makes better use of RAM. On my laptop, it's frustrating to wait for the crappy 4200 RPM to speed up when I'm just typing. Yes, it is noticeable...start the hard drive spin up....then the letters start appearing. Ugh, frustrating how many things that you think should go through just RAM(512 on my laptop) such as typing in Word or surfing. Weird because I dont' notice it on my desktop.

I don't understand how Google has become such a behomoth since I rarely use their site and can't think of anything else I use from them. But I can understand why Microsoft would want to buy Yahoo. Just surprised they weren't more forward-thinking and didn't see the trends before everyone else and didn't buy them (or Google for that fact) when they were smaller and cheaper.

RE: Has to be said
By Oregonian2 on 5/4/2007 1:21:28 PM , Rating: 1
You'll have to change to the 64-bit ones (including apps). "32-bits" IS 4G (and some of that is needed for overhead things so user space has to be smaller). Can't do more unless you want to go back to old fashion memory bank switching (UGLY and SLOW). Their 64-bit OS's can use massive memory. Of course one needs a suitable processor, MB, etc to support that memory too. And you need 64-bit video apps, probably 64-bit drivers, 64-bit utilities (Scenalyzer come in 64 bits?). Etc.

RE: Has to be said
By Oregonian2 on 5/4/2007 1:25:59 PM , Rating: 1
P.S. - I uze google a zillion times a day both at home and at work. It's essential to me (some other search engine could theoretically do too, but Google seems to give me the best results).

RE: Has to be said
By RW on 5/4/2007 9:25:18 PM , Rating: 2
I'm using google too most of the time but I think I could use any other search engine if it would be as powerful/eficient as google is with the condition that the other search engine to have not only the default .com search page but regional search pages like google has where u can easily select the option to search pages written in my base language or from my base country.

RE: Has to be said
By Oregonian2 on 5/4/2007 1:42:27 PM , Rating: 1
You can set your system to not power down your drive after a timeout, that'll help (sounds like that was happening). You also can get faster drives than 4200 rpm for laptops, as well as the newer flash replacements (albeit $$$). Those aren't OS things so much as laptop power saving issues (as well as issues about you not wanting to lose what's in memory of you yank out the battery). Might also suggest a desktop for video work.

P.S. - Of course doing those suggestions above make the battery go dead faster too. :-)

RE: Has to be said
By creathir on 5/4/2007 11:48:14 AM , Rating: 1
And what qualifies their OSs that are out as being bad?

Vista, in my opinion (obviously not yours) is the best OS made to date. Period. Its an opinion.

Microsoft has to charge for the software it develops. It is a company that has 30,000 programmers in the Seattle area alone. 30,000! Lets just say the average salary is $75,000. (Prob. higher)

That would mean every year they had to dish out $2.2 Billion. If the average OS unit shipped is only $200, they would have to ship 11.2 million units every year. Should be easy enough to do, but given that they have MILLIONS of shareholders they need to please, the more the better.

Microsoft is not a charity, they are not out there aspousing their ideals and creating software "beacuse it is fun". This is a business, and the purpose, is to make money. Period.

- Creathir

RE: Has to be said
By hubajube on 5/4/2007 12:18:38 PM , Rating: 2
Lets just say the average salary is $75,000. (Prob. higher)
Most likely it is lower. Microsoft doesn't pay high wages but their benefits package is supposedly very good and just having Microsoft on your resume is a bonus.

RE: Has to be said
By masteraleph on 5/4/2007 12:33:19 PM , Rating: 2
$75k is probably not an unreasonable estimate. I know that summer workers are prorated for a $60k salary, and that would obviously be just starting out.

RE: Has to be said
By Oregonian2 on 5/4/2007 1:15:16 PM , Rating: 2
Being an engineer, and one who has former colleagues who have gone on to work at Microsoft, the average is probably higher. Yes, they've great stock bonus plans and the like, but they're also supposed to only hire the smarter/better folk as well who would be higher priced (the folk I know who went there were VERY sharp people). It was mentioned that interns were being paid at a 60K rate. There is a LARGE difference in salary between someone out (or not even out yet) of school and someone experienced (also a large difference in quality of result as well). So given that I think they've a relatively experienced employee base the average is probably above the middle of the range.

RE: Has to be said
By Oregonian2 on 5/4/2007 1:16:24 PM , Rating: 2
What happens when pretty much everybody has bought their copy of XP (which is a good solid OS). Shut down?

RE: Has to be said
By PrezWeezy on 5/4/2007 2:00:56 PM , Rating: 2
Hence diversification (buying Yahoo) or start working on the new one (Vienna.) There is also office, and lots of other products that Microsoft puts out. His logic is slightly flawed in saying that the OS's are their only source of income, but at the same time there are far more people working there than programers.

RE: Has to be said
By Oregonian2 on 5/4/2007 8:58:19 PM , Rating: 1
Yes, exactly. And why Microsoft (and others) have been trying to get out of selling software and into a service sort of mode where one has to continuously send them money 'forever', that way they avoid the market saturating and having to change businesses repeatedly. This also is the idea around web applications and getting people used to them before having better versions for a monthly fee (forever). Also the idea behind subscription music services. Sustainable fees ad infinitum. Stop payments and one has nothing. I used to have a friend who liked to joke, making fun of drug dealers: "I'll give you the first one free!". Much the same sort of business philosophy because they'll then have one as a customer forever.

RE: Has to be said
By kmmatney on 5/4/2007 9:12:09 PM , Rating: 2
Microsoft should just make their search engine better. I use it occasionally, but it usually doesn't give me the results I'm looking for. It is did, I'd use it. I'm sure they could improve it, and improve the whole MSH site in general, for less than 60 Billion dollars.

RE: Has to be said
By ncage on 5/5/2007 4:05:09 AM , Rating: 2
Where do you think a majority of googles revenue comes from and what its whole buisness model is built around?


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