Microsoft, Yahoo prepare battle-stations against Google threat

Microsoft LogoThe enemy of my enemy is my next purchase; a reasonable facsimile of what Microsoft is thinking right now. Microsoft just put forth a bid this morning of 44.6 billion dollars. Yahoo is examining the unsolicited proposal that has stock markets rocking.

The world’s largest software outfit and one of the most established companies on the web are preparing for a showdown with Google. Both Microsoft and Yahoo have seen their share of the Internet search market slide year after year.

Yahoo has seen success in online advertising; it’s a space Microsoft wants in. Of the booming online advertising market Microsoft has said it’s: "increasingly dominated by one player."

And we know who Microsoft is talking about. The company that has Google-bots indexing the known universe is a formidable opponent.  Microsoft believes it can help Yahoo become a competitive player in this market once more.

Microsoft projects online advertising will double from a $40 billion industry in 2007 to nearly $80 billion.

Yahoo will give Microsoft a foothold on the web with a recognized brand. Let’s face it - Yahoo is a lot more fun to say than MSN. Microsoft will need a brand name that doesn’t sound so sterile and uptight if it’s going to compete on the Internet with a company that has a name that sounds like a flavor of Ben and Jerry’s ice-cream.

Yahoo says its board will "evaluate this proposal carefully and promptly in the context of Yahoo’s strategic plans and pursue the best course of action to maximize the long-term value for shareholders."

Then break for ice-cream.

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