Microsoft Buy Yahoo Deal Google Ready to Pounce
What will Yahoo be worth at the end of all the deals being put on the table by such as Microsoft? Now talks are of a non full buyout from Microsoft who are still pondering the deal. Stockholder values are being maximised it what we are being told, be we have to ask what other motives are driving Yahoo.
We asked this before, but what what will Google do ? It seems both Microsoft and Google are looking at internet advertising collaboration with Yahoo…
Steve Barbes 1820 days ago
http://www.infoservegroup.comFollowing up on Dan’s questions, I guess all is beginning to become clear on the one hand, whilst actually becoming even more complicated on the other! Yahoo! is a fantastic global brand and, although there are clearly some senior managers, particularly in the US, who are looking elsewhere for their future commercial living, there are some great professional and innovative staff here in Europe who, I am sure, can get Yahoo! back into a strong market position.
Whether or not the Microsoft merger/takeover goes ahead will no longer depend on détente between the two rival’s Boards. Carl Icahn, a very wealthy and experienced mover and shaker in the financial world for many years, has his mind set on replacing the existing Yahoo! Board with one of his own in order to resurrect a deal between the 2 organisations. We should know by the end of July whether this has happened, and whether or not the Google ads supply deal in the US and Canada is a long-term partnership or not.
It is ironic that we read daily of Yahoo!’s travails as it remains a profitable and interesting business with huge strengths, albeit that it is very much in the shadow of Google in terms of market share for search. Online advertising is predicted to exceed that of TV advertising for the first time in 2008, and search, both general and local, will be a major part of this expenditure. On the one hand this puts Google in an extraordinarily strong position, with its remarkable technology, focused and able management teams, all buttressed by its remarkable market share; and yet on the other hand, Yahoo!’s strength as a general portal is still very much in evidence. If they can adopt a new and aggressive growth strategy, Yahoo! remains perfectly placed to benefit strongly from the bringing together of local search, general search, video and more detailed and informed content as a compelling cocktail when a consumer performs a search.
Monopolies never succeed in the long term, and I doubt very much whether Google wishes to actually become one, but Yahoo! will rise again in whatever ownership jacket it sits, and a strong Yahoo! will, I believe, end up being as good for Google themselves ironically, as it will be for Yahoo!’s users and shareholders.