In a move that is not completely unexpected, Microsoft (NASDAQ: MSFT) offered $44.6 billion to acquire Yahoo! (NASDAQ: YHOO) on Friday. Could the combined companies pose a threat to Google's monopoly stronghold? Let's hope so.
According to comScore, together Yahoo! and Microsoft would have a 32% share of the search market, which is still significantly lower than the behomoth of Google (NASDAQ: GOOG) with a 59% market share. In fact, Google accounted for 97% of the growth in search advertising during the fourth quarter of 2007.
For consumers, this merger makes sense. For marketers, it also makes sense as more competition will certainly bring in more opportunities and innovative new initiatives.
What do you think? Can Microsoft really pose a threat to Google with its current way of doing business (i.e., slow and methodical vs. risk-taking and innovative).
Analysts from The Street don't anticipate any other companies joining Microsoft in a bidding war, but they also think Time Warner (NYSE: TWX) may react with plans for its AOL unit, which could affect the Yahoo! and Microsoft scenario. For example, analysts wonder if Google might move to acquire AOL?
I'm looking forward to watching this one play out.
» Microsoft Vows to "Consummate Transaction" with Yahoo from MarketingBlurb
As expected, Yahoo! rejected Microsoft's $44.6 billion acquisition offer (that's $31 per share) saying it severely undervalued the company even thought the offer was a 61% premium over Yahoo!'s stock price last week. Microsoft re... [Read More]
Tracked on: February 11, 2008 9:07 PM | Permalink to Trackback