Yahoo hates Microsoft but Resistance is Futile

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Feb 03 2008
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Almost every blog that I visited has the story about the Microsoft and Yahoo in the making – probably the deal of the year 2008. A mind-boggling $44.6 billion offer with half of it in cash that will indeed drains Microsoft’s cash reserve, some reports said this is perhaps the last thing Bill Gates’ empire could do to give Google some real punches. The fact is both Microsoft and Yahoo could not topple Google Inc. (Nasdaq: GOOG, stock) individually even since.

On one hand the world’s most valuable technology company was strategizing and pulling its own hair thinking on ways to bring Google down, or at least stop it from growing unstoppable. Just like a cat waiting patiently for the mouse, Microsoft Corp. (Nasdaq: MSFT, stock) was waiting for the right time to pounce on Yahoo Inc. (Nasdaq: YHOO, stock). On the other hand Yahoo was getting from bad to worse, earnings wise. Not sure if all the planets are aligned but Microsoft sure thought so with such a generous offer – 62 percent premium.

Yahoo hates MicrosoftPeople who do not understand the online advertisement business might think the $44.6 billion was rather too much. It was reported that internet advertising is expected to double in the next three years. Big deal, so just how much is this so-called online advertisement business? A whopping $80 billion in 2010 from $40 billion in 2007 – hence you can see just how much money Google was making and why Microsoft was so damn jealous of this internet search engine company started by Stanford guys. However Yahoo has built its own strong brand, so expect Yahoo to give a tough fight against falling on the lap of Microsoft.

Rumors have it that Yahoo might try to find other white knight instead such as News Corp and InterActiveCorp. Others thought it would be a good idea for China’s search leader Baidu.com Inc. to join in the bid for Yahoo as well. Another possibility could be a takeover bid by Yahoo’s own 40% Alibaba.com. The extreme proposition was to invite Apple Inc.’s chief executive officer Steve Jobs to save Yahoo’s butt.

Bill Gates Resistance is FutileGiven the choice Yahoo’s founders and possibility the company’s staffs would prefer to carry Steve Jobs’ balls rather than eaten alive by Microsoft Corp. But other shareholders might think otherwise as long as they’re making good returns from the disposal. Furthermore the 62 percent premium offer would be too much to reject considering the poor performance of Yahoo’s latest earnings report. Most analysts think Yahoo’s fate is sealed and it’s futile to resists. Why not force and ask for even higher premium from the cash-rich Microsoft Corp.? Personally I sure hope the branding of Yahoo could survive but …

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I have been following your postings on how to earn pocket money through blogging and have enjoyed reading them. Really amazing that online advertising is estimated to double to US$80 billion by 2010.

I may be wrong but I note that you do not appear to have Ad-sense adverts displayed on you blog. Why is that?

Please advise us which of the following advertising mediums you recommend we should or should not use and why:

1. Ad-sense
2. Pay per post
3. Nuffnang
4. Adverlets.

Would appreciate any other bits of advice you may have to offer.


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