Microsofts Big Buy-Out Bid for Yahoo
Today, Microsoft’s bid to buy out Yahoo was made public at a staggering $44.6 Billion. This bold act is probably being issued to compete against Google in the online advertising business and online technologies. For a long time, Microsoft has been holding itself back in the 90’s with its primary focus on actual computer software instead of trying to incorporate where the future of computer technology is actually headed even with the issuance of the Web 2.0 standard. Microsoft’s late run-in has led Google to pick up major portions of the market.
The last several months we’ve seen Microsoft trying to catch up by purchasing many other online advertising firms. The bid for Yahoo however is huge! The price offered is about double the current stock value of Yahoo and more than some countries GDP. This sizable purchase can either make or break Microsoft.
In order to be competitive, Microsoft will have to change some of its ideas that it has always had. For as long as history can remember, Microsoft has always tried to push its products and services through purchases. However, the online industry is not one that will back-track and go back into desktop software that you install on your PC. With house-hold internet speeds escalating, our software will be held on mainframes at companies that make connectivity between users, friends, and co-workers much simpler and standard. If Microsoft tries to push its desktop software through Yahoo instead of going into open online software like the market has been seen going towards for years now, it’ll be a huge crippling waste of $44.6 billion.
Also, the anti-trust monopoly issues that will possibly come out of this won’t be good for Microsoft. After losing its anti-trust suits in the EU and being made to conform to even more stringent rules, Microsoft may not be able to really do anything useful with the acquisition other than eliminate another competitor in the online ad-based world.
Leave a Comment