News is that Yahoo! will announce tomorrow (Feb, 11) its intention to reject the $44.6 million offer by Microsoft. Yahoo may be playing tough and holding out for more dough, but it is not without risks. Microsoft could take the offer directly to shareholders who may choose to oust the Yahoo board of directors. While this setback may be seen as good news for rival Google, it is difficult to predict how this might turn out for the search leader. Certainly a merger of two former competitors into a super-competitor would spell trouble for Google…whose lead in the search advertising business is currently unquestioned. In the short term, Yahoo stock is up for now.
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I think that this merger is really neat. I have never really been the type to keep up with these things in the past but in my media class we had a discussion about this and I fell that the way they rejecting the money was smart and it keeps their competitors on their heels. I feel that Google must now have to up there game in order to keep things rolling in there favorer. This battle actually interests me and I enjoyed reading this blog.
I don’t understand why Yahoo! wouldn’t accept Microsoft offer and merge to overcome competitors at Google. $44.6 million dollars is a lot of money to walk away from unless you have a better plan, but I only see the positive side of merging. I see why Microsoft would want to their proposal to the stakeholders because at this point it seems like everything is in-line and the Yahoo! board of directors is just holding out for a big pay day. Google should be trying to work something out with Macintosh to see what they can do with a merger, because when Yahoo! and Microsoft merger is completed it is going to give Yahoo! a lot of leverage in the search engine competition.
Way to go Yahoo!. What is happening with this merger has happened before. Microsoft is trying to dip it’s toe in every area it can. Before this Bill Gates was charged with creating monopolies by buying all the companies in one area so they could control it completely. Microsoft is like a huge gelatinus blob that tries to swallow up anything that can make more money for it and Gates grows ever more powerful. If he wasn’t restricted he’d buy out everyone.