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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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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
quote:
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.


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