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February 01, 2008

Microsoft to Acquire Yahoo | Big Technology News

BIG BIG BIG News today.

Microsoft has supposedly made a bid to acquire Yahoo for $44.6 billion. This represents a 62% premium on Yahoo's stock after yesterday's closing.

It's hard to imagine Microsoft and Yahoo as one big company. The competition on the internet seems to be consolidating with few BIG players out there. If the bid goes through, we will have IAC, Google, Microsoft and up and coming Facebook.  I bet alot of jobs are going to be lost as a result of this acquisition as an immediate redundant operations overhaul would have to be completed.

I think from a Yahoo perspective it's a great deal. From a Microsoft perspective, I understand that they want to acquire the user base that Yahoo has as well as getting into the online advertising landscape to compete with Google, but the deal just doesn't seem right to me. Maybe I don't want to picture a world owned by Microsoft. Microsoft owns part of many popular sites : Facebook, Google, Yahoo and I bet alot more properties. I would have spent the money to buy Facebook if anything. Acquire companies where the net is going, not where it's been.

On the bright side, at least we'll see more competition to Google for their online advertising and make the rates more competitive. :)

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Microsoft has to digg into companies with databases of clients/users/readers because they've been solely invested in the non-interactive business for so long.

Their reputation, as a result of their piranha-like competitive behavior, is also soiled. It's too late for the tiger to change its stripes so all that is left is for it to invest or purchase bits of this or that company.

Yahoo is a good fit for them. MS gets an existing, functioning machine and Yahoo has a protector against Google and Facebook...but wait! Doesn't MS also own a piece of Facebook? Yes, but on a micro level, where people have jobs and families and loved ones, a purchase of Yahoo means stability.

For we, the people, it means new things and, like you say, competition with Google for ad space pricing. It's all good, from what I can gather.

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  • My name is Chris Ragobeer and I am the a blogger that resides in Toronto, Ontario. As you can imagine, I am heavily passionate about the Marketing and Technology industries.
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