Posted by: montegroup | February 1, 2008

Microsoft Puts Official Bid to Buy Yahoo

This is big news in the search engine world but perhaps not a surprise, it probably can viewed more like a desperate move of survival by Microsoft.

The Microsoft offer is for $44.6 billion, about 60% above Yahoo’s shares at the closing of the markets on January 31/08.

I think the deal will go through as it is a deal Yahoo can’t refuse, as it struggles to keep up with market leader Google; plus there’s likely no one else willing to pay more as Google is unable to bid from an antitrust point of view.

Another big driver for Microsoft’s move is Google’s successful bid for DoubleClick and the fact that Google dominates the Search Marketing (PPC) space with an estimated worldwide market share of 75%.

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Responses

  1. Indeed only shareholders have something to win from Micro$soft-Yahoo! merge.

    This is really a bad news for the web & for Yahoo! employees (many of them will be “sacrified” in the name of “eliminating redundant infrastructure and duplicative operating costs”)
    ;o(


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