Friday, February 1, 2008

Microsoft bids $44.6 Billion for Yahoo!

Read the WSJ.com article here.

According to that article, one of the main reasons Microsoft wants to acquire Yahoo! is help them complete with Google in the online ad market. Besides that, I really don't see ANY reason for Microsoft to do this. Theres little synergy between the online services that Microsoft and Yahoo provide. They both have IM, mail, maps, a web portal, search, an online music store, and many other overlapping services. It appears that Microsoft wants to strengthen their "Live" online services, a brand that doesn't come close to living up to its origonator, Xbox Live. Another thing to consider is that "Yahoo!" is a much stronger brand than "Live."

So here's what I see happening if this goes through: They combine their ad services. Everything else stays seperate. Would Microsoft waste the "Yahoo!" brand. No. Would Microsoft throw away everything they have done with "Live"? I doubt it.

Even it does work out, they still won't be able to dethrone Google.

3 comments:

KBriz said...

I just read about this too Ev. I really dont see what good will come of it. They claim to be trying to defeat google, which is, imo foolhardy.

Abdul said...
This comment has been removed by the author.
Abdul said...

I don't think this will enable them to capture the market or do anything. Google is already growing exponentially, and I think it's all gonna fall to Google eventually.

Kinda scares me that few giant companies are eating up the web and monoploizing on the major internet communities.