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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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What Micrsoft needs...
By borowki on 5/4/2007 9:49:29 PM , Rating: 3
...is a massive layoff to get rid of the dead wood. The company's Internet operation just sucks. I have had Hotmail service for over a decade--before it was acquisted--and the quality just has steadily declined: service is unreliable and slow, the user interface gets more unintuitive with each "upgrade," etc. MSN is crap--doesn't even work correctly sometimes with IE7. What the heck? MSDN is a disaster. Pages are moved around for no apparent reason. Make a shortcut to one and chances are it'll be dead a month later. And usually half the links returned by the search figure are dead too. The only reliable way to get to any Microsoft page, I've found, is to use Google. And Live.com? My god it's a joke. They have all these features that seem cool in theory but which don't work half the time. How can you screw up with that kind of money? It just ridiculous.




RE: What Micrsoft needs...
By Xenoid on 5/6/2007 4:03:31 AM , Rating: 2
Don't know why this voted down but it is completely true. I cannot stand using any of the things you mentioned. Trying to find fixes for really strange bugs, dev stuff, or MSN networks are all awful.

And hey, I like MS so don't assume I'm just a hater...or a blind follower.


"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone

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