Friday, February 1, 2008

Google may have a competitor!

This is the biggest news ever, so I felt that I have to give my take of situation of Microsoft new business direction.Microsoft has made an bid for Yahoo (the second largest search engine) for 44.6 billion dollars which is about $29.60 a share.Yahoo also had a 62 percent premium to boot on the bid.You know their has been a rivalry with Google and Microsoft since Google became the number one search engine, last year it had 56% of the total searches on the Internet. While Yahoo has just a mere 18% of he market share and MSN relative smaller 14%. So I think Microsoft probably was pissed off from the whole double click fiasco , purchase of youtube and Google coming out with a phone that competes for its phone Os.

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Also Micorsoft saw it was a perfect oppurtunity to buy Yahoo since Google released their fourth quarter statement that missed their market target by 6.4%.Microsoft has raged war on so many rival companies such as; Sony with their X-box 360 , Apple with zune music player, and know trying to conquer the Internet. Remember not to long ago Microsoft with through a court case about the company turning into a monopoly. Back then,Microsoft had no competition n the software market. So it seems that Bill Gates had a change of strategy ,instead of becoming a dominant force in one market, He felt that Microsoft should own good share of multiple markets , so he may be able to avoid any accusations of starting a monopoly( But ultimately he makes more money).

So , I am wondering what will Google do about this situation. The only other leader on the Internet right is Aol Time Warner (who owns aol and myspace). So I am assuming that Google may be interested in acquiring Aol Time Warner , since Google doesn't have the cash to purchase Yahoo yet. Microsoft and Google may share common ground in the stock market but in bank account stats Microsoft is far beyond Google. So if this bid goes through Microsoft might become one of the biggest search engines around, matter of fact the biggest companies around.
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