Microsoft – Yahoo! Deal

The much talked about Microsoft – Yahoo Deal is something that possesses some enthusiastic details. Microsoft’s offer to acquire Yahoo! with supposedly about $44 Billion was something that shocked the technology industry, and gave rise to mixed feelings. It is very interesting to witness deals, or the occurence of their rise. Such two big major companies, which charge the cyberspace currently in spheres of Advertising and Ad-Related entities have given their respective opinions on this much talked about deal.

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“Steve Ballmer cited the companies’ “combined ability to focus engineering resources that drive innovation in emerging scenarios such as … mobile services,” as one reason for a tie-up.” (Source : Forbes.com)

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So then, Microsoft was very hopeful of this potentially conquering project, but all their wishes didn’t come true after Yahoo! rejected the deal, asserting that the bid was too low for them and that Microsoft was underestimating Yahoo’s services and work. And by the way, Google wasn’t too delighted with the way the things were revolving around the Microsoft-Yahoo! Deal:

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“David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer at Google writes:

…Microsoft’s hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another. It’s about preserving the underlying principles of the Internet: openness and innovation.

Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies — and then leverage its dominance into new, adjacent markets.

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? In addition, Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet. Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors’ email, IM, and web-based services? “

(Source : http://www.techcrunch.com/2008/02/03/google-cries-wolf-on-microsoft-yahoo-deal-irony-comes-up-blank-in-google-search/; Sincere acknowledgments to them!)

According to my personal analysis, even if the Microsoft-Yahoo! deal ever surfaced, Google wouldn’t compromise for the deal and you know, get let down. It would by far make its services more efficient and more competitive simultaneously not under-estimating the potential of Microsoft – Yahoo! combination. Apparently, Microsoft and Yahoo! are weak in a certain primary segment where Google rules: Search Engine. Both Microsoft and Yahoo are comparitively less influential than Google in terms of efficiency of search engine science. And that Google could use to overpower even the combo of Microsoft and Yahoo!. For now, the deal’s not exisiting anymore and it would be very interesting to witness Google as the emperor of the net, or others prying for the same. Or, it could be that Google would recieve a surprising competition from a hitherto unknown Ad-Innovated website!

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09:48 A.M