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Microsoft announced it had proposed a per share price of $31 to Yahoo! board of directors. The offer is over 60% more than the price of Yahoo! shares before the announcement, and represents a total value of over $44 billion!

This may be big news to the search and online advertising markets dominated by Google. The total share of Yahoo! and MSN live of the search market is around half that of Google, so combined they could actually make a difference. I guess Microsoft now sees the full potential of online markets, as the estimated growth for online advertising is 100% during the next three years.

The Yahoo! share jumped up by 50% as a result, I wonder how Google will react. They recently reported annual earnings lower than expected, and their share price has fallen from last year.

Do you think this will have an effect on search market?

Source: CNN Money

by Sutocu | February 1, 2008

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2008-02-03 16:43:01

I was reading about this in the news last night.
I do believe that it has already had an effect on the search engines market and shares.
If I owned yahoo shares right now I would already have sold my shares at double their value yesterday.
It must be said that everyone wants to become the Google slayer of search engines.
Good luck with that!
Todd

Comment by Sutocu
2008-02-03 19:29:14

Yeah, luck is something they will need.

 
 
Comment by Kauai Weddings
2008-02-04 21:21:00

How could it not have an affect. MSN and Yahoo are the only real competitors of Google. Combined they might actually do something. It would be nice to have someone slap Google down to size (not holding my breath til that happens though :) )

 
2008-02-04 21:58:05

I think it will be good in the long run even though I am not a Microsoft fan. Google has become way too powerful and the playing field needs to be more level.

 
2008-02-05 01:01:44

Why hate on google? It’s one of the best companies in the world.

Comment by Sutocu
2008-02-05 15:13:41

At least for me it’s not about being against Google, but being against any company with a too dominant market position. (Monopoly or near monopoly.)

 
 
Comment by Bill
2008-02-05 02:33:21

Well, if Microsoft does manage to buy Yahoo, I think that it will be a huge jump on Google. Though I’m not saying this is a bad thing but it will happen.

 
2008-02-06 09:54:34

Ya, Microsoft had already overtaken the MSN and now it is moved towards yahoo. Both yahoo and MSN are the real competitor for the Google and now both are come together and may share the price equal or more than Google in the market. But Google is the most powerful group.

 
Comment by Gaming Forums
2008-02-06 13:54:11

Whatever microsoft and Yahoo! do .. I believe google will be on top.

 
Comment by property sale
2008-02-06 16:21:18

Every one seems to thing Microsoft and Yahoo will be some kind of great Google killer. Wake up folks, any mega corp has too much baggage to really give a crap about the little people. No mater how the sale turns out you and I will be screwed in some manner.

Comment by Sutocu
2008-02-06 19:57:13

It’s a bit naive to think some corporation would really look after its customers, but the idea of those who support MS&Y! in this is that Google will lose its too dominant market position. Any one company shouldn’t be able to make all the rules.

 
 
Comment by Putco
2008-02-08 12:50:35

i don’t think they will get through

1st yahoo wouldn’t want a new partner

2nd MS wouldn’t get enough time to recover what they have invested

 
Comment by FInd Articles
2008-02-10 05:35:48

I think its official that Yahoo will reject Microsoft’s offer. However, I’m sure that Microsoft will keep up’ing the ante until Yahoo has no other option, but to accept it.

 
Comment by AntiVirus
2008-02-10 11:41:16

both have something that each other wants

yahoo needs more money to grow

MS wants yahoo’s search engine tech

but the price tag is too expensive!

 
Comment by Number plates
2008-02-25 15:43:36

Still no official word on whether or not this is going to happen, looks like it probably will though, the two are just moving into position.

 
2008-02-26 18:57:27

Has there been any more updates on this? Last I heard, Yahoo was fishing for more cash. Anyone know any different?

 
Comment by Miracle Blade
2008-02-27 04:52:52

I think Yahoo is playing hard to get in order to drive the offer up.

 
Comment by Funny T Shirts
2008-03-01 21:54:48

I hope yahoo makes a strong come back. I am tired of having to try and figure out how to get ahead with google. I hope yahoo realizes that microsoft could really help it become a player again and stop google from being the monopoly that it seems to be right now.

 
Comment by nintendo wii sword
2008-11-17 10:26:54

I also hope for a good entry of yahoo with improvement. won’t accept offer. I think it will affect online marketing badly.

 
Comment by Adolf
2008-12-03 11:07:51

? ?????? ????? ???????? ????

 
2008-12-14 09:18:44

Anything that breaks google’s monopoly is good imho. The fact that google’s marketshare is twice of it’s 2 biggest opponents combined is really scary. Anyway I would be so turned against google if they hadn’t attempted to take 10$ a click from me in adwords, while my competition only pays 30 cents. Greedy sob. :P

 
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