Man O Man, I woke up this morning and saw that number and thought I was still asleep! Microsoft is really chomping at the bit to get its hands on Yahoo. By the way, that’s $44.6 Billion…with a ‘B’.
It’s no secret that both Microsoft and Yahoo have been lagging way behind Google in the last several years. To make matter worse, both companies have been buying up smaller companiesin an attempt to give theirself an edge over Google, but to no avail.
It was nearly a year ago that I predicted that Microsoft would have to buy a major search engine company to stay competitive with Google. Looks like Mr. Gates was listening! (now share the wealth brother!)
Microsoft’s Buyout Details
Last year, Microsoft sent out feelers to Yahoo about a possible takeover. Yahoo’s board told Microsoft that they felt like the time was not “right” for a deal. Which probably means the Yahoo board wanted more time to figure out how to make more money off of Mr. Gates.
Now a year has past and Microsoft is standing at Yahoo’s door with the Armored car out front…actually that would be more like a Armored train!
Microsoft is offering to offer Yahoo shareholders $31 per share, which is an increase over what Yahoo share’s are currently going for.
Will the Merger Really Help Either Company?
Microsoft is looking at saving at least a Billion dollars by merging the two companies.
Personally, I don’t see that both companies combined can take on Google unless their development teams start getting creative. Google is where it’s at today because they offered innovative and creative products and services to Internet users while Microsoft and Yahoo have been offering the same old thing in a different wrapper.
Yahoo has been a little more successful against Google than Microsoft in the PPC arena, but both still come up short. Most of us who use PPC simply get better results and reach more user through Adwords than we do with Yahoo or MSN.
Only time will tell whether or not Yahoo accepts this offer. They’ve recently laid off over a 1000 employees so they are certainly feeling the heat. Microsoft may be just what Yahoo needs to keep its head above the water.
However, unless both start coming out with some innovative products and services, this takeover may be just the thing that drowns both companies (as far as search and Internet services are concerned). It will be a long hard climb to the top for a merged Microsoft/Yahoo and when they get there, they’ll have to deal with King G and he’s not going to give up easy.
