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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: Problem Solving with $$
By Axbattler on 5/5/2007 8:53:33 AM , Rating: 2
In most cases, I am inclined to agree.

Still, I, for one, would say 'poor, poor Aureal'. It was doubtfully voluntary, and though you could blame Aureal from going bankrupt in the first place, it was at the very least, partially caused by the Creative's failed lawsuit. As a strategy, it worked wonders. But it does not promote healthy business competition.

More than 'poor, poor Aureal', I am going to say 'poor, poor consumers'. I am going to say that the X-Fi is a decent card. Yet I can't be wonder what the gaming sound card industry would be like had Aureal sticked around. I think many who used their products would disagree that they had a little gem with potential with them.

RE: Problem Solving with $$
By sxr7171 on 5/5/2007 11:32:23 AM , Rating: 2
Yeah, Aureal was good and I had drivers that were actually stable to go along with it.

"I f***ing cannot play Halo 2 multiplayer. I cannot do it." -- Bungie Technical Lead Chris Butcher
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