Software Giant Microsoft in the process of acquiring YAHOO!
Posted by Varun | | Posted On Saturday, February 2, 2008 at 1:42 AM
Just woke up a bit late coz its a Saturday. the day which every working professional would forward to after a hectic 5 days of non-stop work. For a change i started readin THE ECONOMIC TImes first today ahead of the HINDU. and the front page headlines made me so mush engrossed that i read the entire ECONOMIC times for the first time in my life..
The News was " MICROSOFT Acquiring YAHOO! "
Can you believe this news.. One Giant buyin another giant.. Microsoft has agreed for an unsolicited $44.2 billion buyout for the prominent player in Internet Search services and adveristing business Yahoo! This acquisition is a strategic move to challenge the GOOGLE 's dominance in nternet Search services and adveristing market.
Microsoft 's oFFER of 31$ per share in cash or Microsoft's Stocks is 62% more than Yahoo 's Closing price on thursday.This Offer is defintely so much tempting from Yahoo 's Shareholder point of view that experts think that this deal is very much on. Microsoft CEO Steve Ballmer is attempting the biggest ever technology takeover in the history of Internet Business. ANalysts feel that this move shows that how the Software giant is desperate in order to regain its lost market share in Internet Business to GOOGLE which has grown more every quarter than Microsoft ever since its IPO in 2004. Ever since Microsoft bought the HOTMAIL email from Sabeer Bhatia for a whopping $ 400 million , its market share has shown a exponential downfall.The main reason behind this that Microsoft was a bit late in realising the potential of Internet.
Back In India where both Yahoo and Microsft have its Research and Development Centres in Bangalore and Hyderabad respectively , the reverberations have already began due to this news. Primary reason for this could that the technology platforms operate on a entirely different basis. Microsoft works on Platforms which produces Software products and Yahoo works on platforms which are on online space. Many Techies are of the opinion that the integration of both the companies might lead to a number of problems due to the differences in working environment and services offered.But Microsoft CEO Ballmer justifying all the experts and critics feels that the combined entity would create a more competitive firm providing superior values to shareholders,better choice and innovation for customers and partners.
Now the milion dollar question ahead is WIll the Board members of YAHOO! go ahead with this deal.? Wel i personally feel that at this point of time when YAHOO! is going through a lean phase with dropping revenues and profits every quarter, they don't have a better choice than to go ahead with this deal.If you could see in the starting of this article , i have referred to this move by microsoft a strategic one. I will justify this now coz if the deal goes on, Microsoft on one hand will lose one of it competitor YAHOO! and on the other hand the combined entity of Microsoft and Yahoo will give a tough competition to GOOGLE . ALso Microsoft 's market share in the Internet Business will take a giant leap as it will now have million plus users of yahoo under its belt.
Now I am eagerly waiting For the Next Movement from GOOGLE in answer to Microsoft 's strategic move.
Stay Tuned!
Regards, Varun
