Tuesday, May 6, 2008
Microsoft and Yahoo
With Microsoft's history dealing in federal monopoly charges in the past, it appears the software giant is attempting to acquire Yahoo! Inc., which is what is desperately needs in order to compete with online-king Google. The potential deal has been discussed pretty often in the news, with Microsoft's initial offer pegged at $47.5 billion dollars described as an inadequate number by Yahoo's shareholders. Microsoft is a large, and very very rich company, even just using this figure to judge by. After months of negotiation, it appears that any chance of a deal has disappeared. Apparently the two companies could never come to an agreement for a final sale price, which was a staggering figure. Obviously, during all of these negotiations, Google was not very happy at the potential MS-Yahoo deal. There's no question that Google is the reigning champ of online ad revenue, generated through its search engine and its status as a powerful application service provider. Personally, I think the MS-Yahoo deal would've only provided a short boost in MS's status, as Google's massive user base and its commitment to simplicity would likely overcome any threat by a MS-Yahoo behemoth. Furthermore, I'm surprised that more talk of monopolization wasn't found during the negotiations, as MS has had its fair share of issues in that department. Regardless, with the deal dead, Microsoft must continue to find a way to cut into Google's massive revenue. There are some things that money can't buy.
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