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Microsoft Yahoo Deal – Bold Move Failed or Testing the Waters? February 12, 2008

Filed under: Online News — ivolution @ 1:37 pm
Tags: , ,

Was Microsoft’s bid for Yahoo! a bold move to counter the online and ever-growing presence of Google and bold move turned FLOP or was Microsoft just testing the waters?

Incase you’ve all missed the latest story in the online world, Microsoft announced last week Thursday that they had put in a bid for Yahoo! for about $44.6 billion. Had this little deal gone through, it would have been a total redraw of the entire Internet landscape with Internet consumer services such as email, portals and news sites being fully dominated by YaSoft!

This would have been Microsoft’s largest acquisition ever. In an attempt to get Yahoo! to consider their offer, Microsoft’s top execs said that the companies merger would create efficiencies that would save about $1 billion annually. Although Google’s domination of the search industry would not be under threat with over a 60% share in the search market, the merger would certainly kick Gmail out of the water and boost Yahoo’s presence as the number 1 user and information portal on the web.

ALAS, Yahoo rejected the offer this past week saying that the whopping $44 billion was not enough.

So the question left behind is…
Are Microsoft Testing the waters; either waiting for a counter move by Google or is Yahoo! waiting for more money?

You decide!!!