Recently, Yahoo stock touched $19 a share and then Microsoft made an unsolicited offer of 44.6 billion dollar for buying it. At this point of time, Mr. Gates made it clear that Microsoft will move forward to purchase Yahoo in a take-over bid. There is no doubt that the combined Microsoft and Yahoo can be a formidable competitor for Google particularly when these two companies already have leading market share in display advertising market where Google represents a meager 1% of market share. Moreover, this market currently consists of 21% of the growing multi-billion dollar online advertising market. Combined companies will face a tremendous challenge in cutting out duplicated services and infra-structure.
Google will get a competitive advantage of more that a year while Microsoft and Yahoo will be busy in making the combined company work. But, Yahoo's demise as an independent company would definitely not be a good news for the software industry as Yahoo still is a big promoter of open source software movement which is a strong force against Microsoft's monopolistic policies.
I personally, would not like to see Microsoft acquiring Yahoo but it seems to be a very likely event.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment