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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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By cornfedone on 5/4/2007 11:25:02 AM , Rating: -1
...with defective MICROSUCKS products and their convictions for countless violations of anti-trust laws, all we need now is MICROSUCKS to have more illegal power - NOT!

By masteraleph on 5/4/2007 11:39:59 AM , Rating: 5
Wow, an amazingly well thought out response about the amazing illegal power of a company that combined would still be far behind google in search and advertising share. Yap, a complete monopoly, for sure.

By hubajube on 5/4/2007 12:16:24 PM , Rating: 5
If I could rate you down further. I would.

By 3kliksphilip on 5/4/2007 1:33:10 PM , Rating: 1
I've helped you there ;)

By Oregonian2 on 5/4/2007 1:58:10 PM , Rating: 2
Doesn't the de-ratings go away once you post to the topic?

By bplewis24 on 5/4/2007 4:54:08 PM , Rating: 2

By FITCamaro on 5/4/2007 1:07:01 PM , Rating: 5
Honestly. I'm far more afraid of Google than I ever will be of Microsoft. Google is the one collecting any and all data it "legally" can about us and is free to do with it as it pleases. And the worst part is, everyone views them as this incorruptible company that can do no wrong.

By SailorRipley on 5/4/2007 3:26:01 PM , Rating: 3
apart from the fact that the creed "Better the devil you know..." only holds true to a certain point (as in statistically it's not likely the devil we don't will be worse than the one we do know)

personally, I view Google as potentially corruptible and/but so far has done way less wrong than Microsoft...

"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)
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