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Microsoft and Yahoo! Mission To Control The Online Advertising Industry
From the source of http://www.ineedhits.com/free-tools/blog/2008/02/watch-out-google-microsoft-and-yahoo-to.aspx) Microsoft announced a $44.6 billion bid for yahoo on last Friday (1st Feb 2008). Microsoft would pay yahoo’s out standing common stock for 31$ per share, which was 62% higher than the closing price of the stock on Friday.
Microsoft believes the best way to compete with Google is to join forces with Yahoo, so as to mitigate the google’s continued dominance and mission to control the online advertising industry.
Benefiting from Yahoo’s traffic volume and Microsoft's ad serving technology, a combined Microsoft /yahoo would be a major player to display online advertising with undoubtedly huge search impact.
By calling the Microsoft proposal unsolicited, yahoo stated it’s board of directors will evaluate the offer care fully in the context of yahoo’s strategic plan to maximize yahoo’s long term value for share holders.
According to Mr. Duncan Riley from TechCrunch (http://www.techcrunch.com/2008/02/02/microsoft-yahoo-what-will-stay-and-what-will-go) has put together the list of few components of Microsoft and yahoo with believe that these will stay if the merger between these two companies will go ahead. Please view bellows what Mr. Duncan Riley of TechCrunch has suggested
MSN vs Yahoo (front page)
The likelihood of the Yahoo brand and front page being retired is zero and zilch, so that would put MSN in the spotlight. Microsoft launched MSN in 1995 so the brand has history; however Microsoft’s move towards Windows Live and Live.com branding has diluted the value of the MSN brand.
Reports already suggest that Microsoft will have to divest its stake in MSNBC due to an exclusive supply agreement with NBC, so expect that MSN may be offered for sale as well. It may also go some way in overcoming any potential competition concerns at a Governmental level. There’s only so much room for key brands, and presuming (logically) that Microsoft will keep Live alive due to the Windows tie-in, MSN is the likely brand to go.
Conclusion: MSN to be sold or wound down in favor of Yahoo and (Windows) Live
MSN international vs Yahoo international
Both yahoo and Microsoft have co-ownership agreement in many international markets out side of the United States. In respective markets many of the existing partners of msn and yahoo are commercial rivals, which may cause issues for a combined Microsoft – yahoo maintaining all existing partnerships
Conclusion:
Existing partnership to be divested or separated, with a lean towards maintaining yahoo’s deal
Yahoo search vs live search:
A combined unit of live search and yahoo search can final come closer to creating a Google killer. Yahoo’s search product has never been a strong point where as Microsoft has pumped a lot of money in to live, but definitely two will be end up as one with this merger.
Conclusion: Live search to replace yahoo search on yahoo
To get more about yahoo and msn merger and the impact of the joint venture please visit the page at http://www.techcrunch.com/2008/02/02/microsoft-yahoo-what-will-stay-and-what-will-go
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