Monday, February 11, 2008

Yahoo says no to Microsoft

In a news by ZDNet, Yahoo said no to the acquisition proposed by Microsoft, which offered 31$ per share, amounting to 44.6 billion dollars in stock and cash. The problem seems to be the amount of dollars per share offered by Microsoft, which in Yahoo's opinion underestimates the company in the sense that the merger might be rejected by the regulators. This is good news for Google who expressed its concerns in a blog at the beginning of February. I feel that the acquisition could have had a positive effect since the paid search revenues amount for 75% world wide, while Microsoft and Yahoo combined have 30% in the U.S., while outside the numbers are even lower, with Google having around 85% of the search market in Europe. A more tight competition could benefit everyone. Microsoft did respond with a news release by Microsoft's General Counsel Brad Smith.

The question that can be raised is could have these 'merger' benefited Yahoo?

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