Yahoo rejects Microsoft’s offer

Posted by multippt

Looks like Yahoo decided to reject Microsoft’s offer of $44.6 billion. The deal came surprisingly 1 week ago, and is perceived as “hostile” by many Internet users. The primary reason why Microsoft’s offer was rejected was that its deal is not high enough.

Yahoo also believes that Microsoft is attempting to make use of the recent slide in Yahoo’s share prices to “steal” the company. If compared to 6 months ago, Microsoft’s deal would not be even close to the market shares Yahoo was having. Yahoo is thus very unlikely to accept any offer below $40 a share, which is a lot more than the $31 a share Microsoft is offering.

However, even if Yahoo were to reject the offer, Yahoo does not seem to be in a good position to compete Google. Having lesser funds and talent to compete against almighty Google (a position Yahoo once held until Google came along). Thus, Yahoo is considering other scenarios to keep its independence, such as coming up with an advertising partnership with Google.

Yahoo to decide if it accepts Microsoft’s offer

Posted by multippt

Looks like it’s Yahoo’s turn to decide if it should accept the $44.6 billion deal. The outcome will determine what happens to the search engine community - users, developers, etc. While Yahoo and Google has been actively embracing openess (particularly technologies that are not yet completed), going as far as to making APIs available for free, Microsoft ain’t so active. Rather, Microsoft was seen as shunning openess, prefering to stick to strategies that will somewhat coerce people into using its propiertary technology.

It’s been known that big mergers tend to fail more often, due to the difficulties that arise when merging them together. It’s not easy to get open Yahoo to go with closed Microsoft. However, if Microsoft didn’t buy Yahoo, Yahoo would be facing a lot of trouble from Google. Surely Yahoo won’t want to end up like AOL.

The main point of Microsoft buying Yahoo is not its search capabilities, but rather the advertising. Yahoo is still top at advertising, perhaps maybe until Google acquires DoubleClick. Still, Microsoft + Yahoo will have the overall advantage in advertising Though they still will not be able to compete against Google in terms of search, that is unless Microsoft or Yahoo decides to do something absurd like completely opening up search (or make a lot more information readily accessible), which for years have remained closed-source and restricted despite the presence of APIs provided by Google and Yahoo. Sure, if Yahoo were to do one more step like removing the limits bounded to its search APIs (still considered better than Google’s since they are ad free, and the results can be re-ordered), it may turn the tide against Google.

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Looks like we may need to keep a tab on those Yahoo press releases.

Google criticises Microsoft’s attempted acquisition of Yahoo

Posted by multippt

In response to an (not so) unexpected offer by Microsoft, Google has decided to counter Microsoft’s attempt at becoming a dominant presence on the Internet. Earlier a few days ago, Microsoft offered Yahoo an interesting $44.6 billion to acquire it. Google was playing along silently until 2 days later.

What Google says

“The openness of the Internet is what made Google — and Yahoo! — possible.” - Basically it’s trying to say that Google and Yahoo are very “open” in their approach towards users unlike Microsoft, and has acknowledged that controlling the net is not possible given the freedom of the net.

“Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC?” - Google fears that Microsoft’s takeover will mean that Microsoft will exert monopoly strength and controversy on the Internet as what it has done to computers.

“Could the acquisition of Yahoo! allow Microsoft — despite its legacy of serious legal and regulatory offenses — to extend unfair practices from browsers and operating systems to the Internet?” - Seems like Google is saying that Microsoft is not trustworthy and has resorted to practices that go against fair competition.

You can read all about it from the word of the vice president of Google through their blog.

Google fears 

Though, all these claims, though true, are kind of biased. While Google is trying to inform the public that Microsoft’s acquisition of Yahoo is one that may bring about competition problems (i.e. monopoly and anti-trust), in reality Google is probably afraid that Microsoft Yahoo will be much more formidable than its original opponent, Yahoo. Microsoft has the money, Yahoo has the tech. So, both combined will give them the edge Google will have trouble trying to compete.

Of course… Google can’t simply buy Yahoo

Given Google’s encouragement on “openess and innovation”, Google will unlikely offer up any bid to buy Yahoo, because it doesn’t want to show that it is going against its own words. If Google were to bid for Yahoo, it will cause controversy, because this means Google will be controlling and monopolizing the net. Sure, Microsoft has this problem as well, but in Google’s case it has become an Internet giant unlike Microsoft which has so far been unsuccessful. This makes it all the more harder for innovative Google to acquire Yahoo, especially if it doesn’t want to get hit by anti-trust cases.

Microsoft considers buying Yahoo for $45 billion

Posted by multippt

Seems like Google will be facing a whole lot more competition this time round. While this idea is not new, it is was just speculation amongst webmasters on discussing whether Google will still stay king of the net. Some jokingly said that the only way Microsoft ever get close enough to Google, is to buy Yahoo. This joke has become a reality.

What this means

If this deal is successful, Microsoft will soon find itself into the pages of numerous web surfers around the world. Well, no one can really complain. It’s not like Microsoft is all that bad right? (*Braces self for Windows-related sarcarsm*) Even more importantly, this deal may determine who shall dominate the Internet. Don’t forget that Microsoft had always have an influence over the Internet from the beginning, starting with its Internet browser, Internet Explorer. Microsoft’s acquisition over Yahoo means that Microsoft will have a permanent stake in the Internet. Advertising, search, media will soon have Microsoft’s presence around.

The deal involves Microsoft acquiring Yahoo’s stocks, at $31 per share (i.e. Yahoo is worth $44.6 billion from this offer). Microsoft even added some incentives for existing Yahoo shareholders to make them willing to support the acquisition.

Though, Microsoft hasn’t really mention what it will do with Yahoo, however it does give hints that they will make use of Yahoo’s influence (particularly advertising) and technology (as well as research).

Other offers?

Since Microsoft is offering such a large deal which boosts the value of Yahoo, surely other companies will be more than willing to offer higher prices. AOL may offer up a price. Google might do the same though unlikely, since if Google were to do so, it will face the same problem as Microsoft once did - anti-trust controversy (i.e. monopoly of the search engine market).

The press release

Microsoft has released a formal press release statement on its offer, complete with the excerpt of the letter Microsoft sent to Yahoo.