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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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Everybody is on a buying spree...........
By crystal clear on 5/5/2007 11:36:38 AM , Rating: 2
quote:
Microsoft is feeling greater pressure to compete in the online advertising space.


Microsoft on Thursday said it had acquired Screen Tonic SA, a European manufacturer of software designed to connect advertisers with users of mobile phones and other digital devices

Screen Tonic's STAMP (Structural Time Series Modeling) technology is designed to format digital ads for all major mobile phone platforms. Its customers and partners include McDonald's, Reebok and Coca Cola.

Separately, Microsoft said Thursday that it has completed the acquisition of Tellme Networks, a Mountain View, CA-based developer of voice recognition software. The final price was not announced.

http://www.informationweek.com/news/showArticle.jh...

Takeover rumour orgy hits Reuters, EMI and Yahoo!

http://www.theregister.co.uk/2007/05/04/takeover_r...




By viperpa on 5/5/2007 5:41:06 PM , Rating: 1
Microsoft's aquisition of Yahoo is not going to make things better. It just takes one less player off the playing field. If Yahoo or Microsoft can't compete with Google on there own, how is combining going to better compete with Google? All it does is add more money to Micorosoft's coffers but in the end Google will be on top. Hate to say it but Google has been and always will be better at search and making more money from advertising.


"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay

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