Will Head writes…
Word on the internet is that Microsoft is lining up a bid for Yahoo in an attempt to take on Google once and for all.
The software company is apparently ready to slap down hard cash for Yahoo, and perhaps even more importantly it’s willing to make it feel special in the process.
The two have been in talks before, but in the past Microsoft has apparently lacked a sense of urgency – something that now appears to have changed.
According to those in the know, Yahoo could cost around $50bn to purchase.
This has all been spurred on by Google’s recent takeover of DoubleClick, which didn’t have a very shiny, consumer friendly image before but that will presumably change now it’s being subsumed into the Google mothership.
But would the deal really give Microsoft that much of an advantage over Google? Even with the two companies combined, according to the numbers that would only give them 27 percent of the search advertising market. That’s not even half Google’s 65 percent share.
While it makes some sense for Microsoft, it doesn’t seem like Yahoo would get that much out of it. Just at a time when it’s decided to try and sort out its product offerings so there aren’t overlapping options – like closing Yahoo Photos and concentrating on Flickr instead – throwing everything in with Microsoft’s varied online activities could just complicate things further.
Which search engine will they go with? Or blogging platform? Or IM service? Or [insert duplicated function here]. It just seems a bit like it would create a sprawling mass different products, with employees on both sides claiming that theirs is better and the other one should be cancelled.