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Microsoft offer to buy Yahoo!

Tanya Goodin
Tanya Goodin
1 February 2008

A snip at $44.6 billion!

After a few years of negotiation Microsoft have made a bid for Yahoo! In what looks like a serious offer they have highlighted the need to take on the dominant player, I think they mean Google!

CEO Steve Ballmer’s letter to the Yahoo! board says “Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition”. It goes on to list four advantages a combined company could hold against its large competitor: Scale economics, expanded R&D, operational efficiencies, and new user experiences.

While Google is the dominant force in search it would be good to get a real challenge from somewhere else. I would have thought that Microsoft or Yahoo! could have done this alone, but apparrently not!

Do watch this space!

Most alarming aspect of this is the fact that maverick Paul Reilly of Tamar said this would happen in his 2008 predictions.



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