Microsoft Makes Play For Yahoo - InformationWeek
IoT
IoT
Business/E-Business
Commentary
2/1/2008
03:45 PM
Jim Manico
Jim Manico
Commentary
Connect Directly
Twitter
LinkedIn
RSS
E-Mail
50%
50%

Microsoft Makes Play For Yahoo

InformationWeek, The New York Times

Microsoft has made an unsolicited $44.6 billion bid to buy Yahoo, which earlier this week disclosed less-than-stellar financials.The possible takeover is being widely hailed as Redmond's boldest move yet to compete with Google in the online services market -- a market that has been growing in importance to business users who are opting to access the software they want over the Internet.

?The Windows experience increasingly needs to embrace the Internet,? said Microsoft CEO Steve Ballmer on a call with analysts.

In a letter to Yahoo's board, Ballmer outlined four major areas in which the acquisition makes sense, including "synergies related to scale economics of the advertising platform where today there is only one competitor at scale" and the ability to "drive innovation in emerging scenarios such as video, mobile services, online commerce, social media, and social platforms."

Earlier this week, Yahoo announced a 23 percent decline in its fourth-quarter profit, plus plans to lay off 1,000 employees. Microsoft's offer of $31 a share represents a 62 percent premium over Yahoo?s closing stock price of $19.18 on Thursday.

If this deal goes through -- and there are already rumblings of regulatory and other challenges -- it will have a huge effect on the online marketplace. With one fewer major Internet player, smaller companies could find themselves with a bit less leverage when building all kinds ofonline businesses. Or perhaps the Microsoft/Yahoo combo would offer real competition to Google's dominance, which could be good for customers -- especially small and midsize companies typically stuck using Google's automated online tools.

We won't know for sure until after the deal gets done, if it ever does. But in the meantime, stay tuned as bMighty -- and everyone else -- analyzes, dissects, predicts, theorizes, and pontificates about this incredibly important deal.InformationWeek, The New York Times

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
Digital Transformation Myths & Truths
Transformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll