Yahoo’s Future At Stake


In an effort to topple Google’s search engine market share, Microsoft approached Yahoo for a takeover at the latest reported figure of $44.6 billion.

As estimation made for the next three years ahead indicated a healthy growth of online ads investment, it is a ‘must’ move for Microsoft to win this battle against Google. And this only shows how much pressure Google has put on and threats it imposed on its online competitors.

The bid however, reminds Yahoo of its painful brush with its chance to take the search engine technology further instead of opening its way to search engine leader, Google which is controlling 62% of the worldwide search market now.

While the one of the founders and biggest shareholders of Yahoo, Jerry Yang is believed to have a good impression for Microsoft, having to invite Steve Jobs to Yahoo headquarter and openly expressed his admiration towards the CEO of Apple Inc, Yahoo is not making its decision to move over just yet. In fact at a bid of $31 per share, Yahoo has definitely taken a back; seeing its company being undervalued by Microsoft. Yahoo believes its assets are worth at least $39-$45 per share.

Yahoo at the same time, is also considering a possible alliance with Google instead, which could be an attempt to pressure Microsoft to counter propose a higher bid for its share.

Google on a separate note, accused Microsoft of its effort to join force with Yahoo in order to further monopolize its software dominance into the Internet sphere. Microsoft fights back, defending its initiation by stating that the effort is only to create a healthy competition for the search engine and online advertising market and provide an alternative to the users.

In a memo circulated to Yahoo employees, the directors mentioned that there is absolutely no decision made and despite rumors and suggestions made by many, there is no integration process underway.

In this Microsoft vs Google game, while Yahoo is still protecting its reign and pride; determine to overcoming competition from the giant, perhaps Yahoo in this ironic situation became just another winning chip for whichever party who succeed in winning the company over.

Whatever it is a new revolution in the Internet search market is definitely making its way here sooner than we think.



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