Sunday, February 03, 2008

Microsoft bids $44.6 billion for Yahoo!!!

Well last Friday started like any other Friday, until I read my RSS feeds at about 11.45am and you hear rumours of Microsoft bidding to buy Yahoo. At first you can of think 'Yeah Right!' but the reality is that the bid has been tabled at $44.6 Billion. (How much!!)

The question then has to be asked as to will the deal actually happen? It looks like Yahoo will entertain it but I can imagine it will take some time to go through. But I bet the Yahoo share holders are hoping it does when it values the shares at just over 62% more than what they currently are. It is getting a lot of mixed opinions on the business side with the Fox business teams saying it is a really bad deal for Microsoft share holders and they are paying to much.

Business aside I have to bring this back to one area, if they combined how will this affect their search market share?? In the US Google will still be 56% and the combined Yahoo and Microsoft will only be 31.5%. This is in the US which is the market where they are at the closest as well. Imagine the UK it will be Google 79% and Yahoo-Microsoft combined still only around 14%. As a joint force can they grow the share or will they focus to areas of Technology or Mobile Search?

The only other area to consider is the name....will it be YaSoft? or Microhoo? Time will tell and I am sure there will be a lot more news and discussion about the deal next week.

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