Friday, February 01, 2008

Microsoft Acquiring Yahoo - Sanity check!





Microsoft Friday unveiled a bid of 44.6 billion dollars for Yahoo in an effort to merge the world's biggest software company with a major Internet player to take on the Google juggernaut. Yahoo said it was examining the "unsolicited proposal" and added that its board "will evaluate this proposal carefully and promptly in the context of Yahoo's strategic plans and pursue the best course of action to maximize long-term value for shareholders."
The move comes as Yahoo is losing ground rapidly in the Internet space to Google, the search leader which has been able to cash in on the growing market for online advertising.
Google is truly taking over the internet market and Microsoft feels the threat and wants to encounter it with any desprate move. Yahoo is in rapid spiral decline against Good and MSN, and we all know that it will be nothing but trouble for Microsoft.  On the other hand Google is becoming an irresistible force that no one can encounter or even imagine to take on.  Sacrilege!  Of course MS will take over all those heads that are using yahoo at this time - but this will be a simulated addition and not a true one.  I also predict that if Microsoft buys Yahoo, the Yahoo decline will speed up and the migration to alternate system will intensify.  I guess we have to wait and see. In my opinion, MS might benefit from this merge in the short run - but shall register a huge loss in the long run.  Another point to consider will be this: Is yahoo worth $45B?  Hard to say, but I feel it is not - at least not in the long run.

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