Microsoft to buy Yahoo?

In an unsurprising move, Microsoft made a bid to buy Yahoo in order to increase its role in the World Wide Web with an astronomical offer of $44.6 billion. Traditionally, Microsoft has been relied on desktop software like its hallmark product, Windows and other ancillary softwares like Office, etc. It hasn’t made a serious dent in the Internet business world after acquiring Hotmail and half-baked services like Live Search. Even ContentAds did not deliver much in terms of taking on Google Adsense. Google’s forays into office suites and rise of open source products has seriously jeopardized Microsoft’s grasp on the software market. Perhaps the age of desktop computing for regular tasks is fading and much of it is moving to the Web. Of course, you would still have applications that will run only on the desktop like design software but that was never Microsoft’s forte.

With Google marching on and Yahoo unable to match it, this Microsoft-Yahoo partnership may in fact do something. Yahoo, in spite of its lackadaisical movements on the Web still has one of the dominant portals and its Mail and Answers services are one of the best on the Web. This partnership will let the two dawdling companies take on Google and perhaps give it a serious run for its money.

On a side note, I was surprised to see a significant typo in the news article that I found on Yahoo:

Microsoft executives did not indicate Friday exactly what they would do with Yahoo’s brand if their $45 million bid is accepted [source].

One character makes all the difference, folks. We aren’t talking about Bill Gates pocket change.


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  • http://webdesignbysteve.com Steve

    Poor Microsoft, King of our home computers, but not of search engines. This will automatically grant MS 2nd place.

    If I owned Microsoft, I would buy Yahoo in a New York minute.

    So, what’s next; who will eventually buy-out eBay? Is this where this is leading to?

    Join me in my logo contest for Yahoo’s new logo: http://webdesignbysteve.com/blog/?p=58

  • http://pikeyspeak.com Piker

    I would imagine this to be more to drive revenue into MS from Yahoo!. I really don’t see anyway they can dent Google – not in the near future at least.

    I also read reports of concerns in the clash of Yahoo! and Microsoft’s respective work cultures. A parallel was drawn with AOL-Time Warner’s merger a few years ago.

  • http://www.suyogdeshpande.net/blog/ Supremus

    I think this is a bad move by MS. 45 Billion dollars in research could have probably given them a stronger foothold on next generation internet technologies…instead they want to spend the money on playing catching up. Its ok if the investment is not this big, but at 45billion it seems like a waste of money and resources.

  • http://rajtackeray.com rajtakeary

    that’s a great analysis of various companies yahoo google microsoft hope microsoft consults you before going for deal to buy yahoo. You are the best fortune teller of fortune 500 companies, you are predicting the coming of internet age, all that cable cut and half of the world strangled with no internet services just last week , does not matter i guess to prove the reliability of internet, carry on this fantastic service of yours microsoft, yahoo, google take a bow to this blogger a great genius than einstien , greater than norstradamus, he predicts coming of internet age

  • http://lekhni.wordpress.com Lekhni

    Looks like we haven’t heard the last one on this yet. Google is trying hard to stop the Microsoft-Yahoo marriage from happening.. and Yahoo is not exactly a willing bride in the first place.

  • http://www.ipatrix.com Patrix

    Steve, the web is tomorrow’s desktop, right? Or is it already.

    Piker, the work culture bit might be quite significant. It even works counter-productive in case of Google acquisitions e.g. Dodgeball. BTW long time. Hope you are enjoying Austin.

    Supremus, I don’t big web companies are interested in basic R&D anymore. They rather let the little guys do the grunt work and then acquire them. That said, Yahoo is hardly the little guy on the web so this might just seem like a hostile takeover.

    rajtakery, sarcasm is an art. Learn it first.

    Lekhni, Have your read the Google response on their blog? They are touting loss of innovation as a reason against this merger.