Why does Microsoft do his utmost to bye Yahoo? What about the MSN?
Actually, Microsoft created the MSN ( 2005), an online search company, which, in fact, did not justify the hopes of its creators and did not manage to compete with Google. That is the reason why Microsoft is so interested in buying Yahoo but also because of the popularity of that organization. Obviously, this is not the first time that Microsoft offers Yahoo a merging.
The negotiations of buying Yahoo were carried on for the space of several years. A direct offer of acquisition was made several months ago. Recently, the software giant has decided to renew the dialog with this Internet company.
The price that Microsoft offers is quite impressive - $50 billion for Yahoo.
According to the information of Google Finance, the market capitalization of Yahoo was $38 billion on 4 may. In fact, Microsoft needs Yahoo more than Yahoo needs them.
Another important thing is that Yahoo shares had a 19 percent rise as soon as New York Post announced about the offer of Microsoft to renew the dialog.
The representatives of neither Microsoft nor Yahoo comment the information of merging.
On the other hand, many experts and analyst, working in similar companies and other organizations confirm that Microsoft indeed renewed the negotiations with Yahoo.
In David Garrity`s opinion (director of research with Dinosaur Securities in New York), combining the efforts, Microsoft and Yahoo will succeed in taking their common enemy- Google. He added that in case of merging of these giant companies they will start competing with Google, still it does not mean that they will become leaders.
In case of successful merging the share of Microsoft will become 38,4 percent in American market in this sphere. The united corporation will become Google`s main competitor, which occupies 48,3 percent of american market.
Marianne Wolk, an analyst with Susquehanna Financial Group, said a Microsoft-Yahoo deal merger would quickly trump Google's deal for DoubleClick.
She said: "A deal would create a behemoth in online branded display advertising and in my mind it would make Yahoo's Right Media exchange the standard for ad marketplaces"
"Microsoft has only one chance to occupy a really competitive place - to bye 5 or 10 small companies or something like Yahoo,"Â said one of the Cacaccord Capital`s analysts. In his opinion, in order to overtake Google at the expense of their own resources they will need at least 10 years and many many billions of dollars. He said also that the success during these negotiation is quite possible, but it does not mean that the merging is unavoidable. According to what he said there is a 70% probability that the merging will take place during 6 or 9 months.
Earlier, the General Director of Microsoft S. Bolmer confirmed the rise of expenses on attraction of more internet service users and also on development of their own searching system, trying to compete with Google. But Google and Yahoo work much more effectively in this sphere than Microsoft.
Most likely that Microsoft which lost the struggle for acquisition of DoubleClick concentrated all his efforts on Yahoo in order to buy it.
Anyway, the fates of those two companies are not decided yet and maybe even no contract will be signed between them. In all cases Google had better be careful, as the software Giant is already pursuing him and who knows what will happen and who will be the leader if there is a new company which includs Microsoft and Yahoo. - By Narek Abrahamyan for HULIQ.com
