Microsoft eyes Yahoo! in proposed takeover
Still smarting from the loss of online advertising firm DoubleClick to rival Google last month, Microsoft is now actively pursuing search giant Yahoo!, the New York Post is reporting.
The paper cited sources who say Microsoft, having already made an offer to acquire Yahoo! several months ago, is now urgently courting the web firm to re-enter formal negotiations.
Yahoo!, which is valued at around $50 billion, is reported to have aggressively rejected the Redmond, Wash.-based software giant's initial attempts to discuss a takeover.
For its part, Microsoft is said to be more determined than ever to strike a deal after Google last month snatched DoubleClick for $3.1 billion from under its nose.
"They're getting tired of being left at the altar," one banking source, who has recently had talks with Microsoft , told the Post. "They now seem more willing to extend themselves via a transaction to get into the game."
Moreover, the move by Microsoft is seen as a necessary offensive, given Google is developing Internet-based software that directly competes with Microsoft Office, among other things.
Based on current estimates, a deal between Microsoft and Yahoo! would up the combined companies' share of the all-important search advertising market to 27 percent against Google's 65 percent, said the Post. It would also narrow the gap in overall online ads with Google to just 13 percent.
More importantly, the deal would create "the dominant force on the Internet" in terms of eyeballs, which directly translate into advertising dollars. Microsoft's MSN currently caters to an older audience while Yahoo!'s entertainment coverage attracts a younger demographic.
"Aside from cost savings, a deal would also create opportunities to use Yahoo! content on Microsoft devices, such as making music exclusively provided to Yahoo! Music available on Microsoft's Xbox game console and Zune music player," said the Post.
The paper cited sources who say Microsoft, having already made an offer to acquire Yahoo! several months ago, is now urgently courting the web firm to re-enter formal negotiations.
Yahoo!, which is valued at around $50 billion, is reported to have aggressively rejected the Redmond, Wash.-based software giant's initial attempts to discuss a takeover.
For its part, Microsoft is said to be more determined than ever to strike a deal after Google last month snatched DoubleClick for $3.1 billion from under its nose.
"They're getting tired of being left at the altar," one banking source, who has recently had talks with Microsoft , told the Post. "They now seem more willing to extend themselves via a transaction to get into the game."
Moreover, the move by Microsoft is seen as a necessary offensive, given Google is developing Internet-based software that directly competes with Microsoft Office, among other things.
Based on current estimates, a deal between Microsoft and Yahoo! would up the combined companies' share of the all-important search advertising market to 27 percent against Google's 65 percent, said the Post. It would also narrow the gap in overall online ads with Google to just 13 percent.
More importantly, the deal would create "the dominant force on the Internet" in terms of eyeballs, which directly translate into advertising dollars. Microsoft's MSN currently caters to an older audience while Yahoo!'s entertainment coverage attracts a younger demographic.
"Aside from cost savings, a deal would also create opportunities to use Yahoo! content on Microsoft devices, such as making music exclusively provided to Yahoo! Music available on Microsoft's Xbox game console and Zune music player," said the Post.
Comments
I can't wait.
I don't get the relation to Apple, really
For one thing, Yahoo just did that deal to put push email on the iPhone. Say goodbye to that, if Microsoft takes over.
Yahoo's chief Yahoo! also made reference to several other projects Apple and Yahoo were going to bring out over the next few years. So long to those, too.
This would be a bad thing for everyone, except Microsoft.
For one thing, Yahoo just did that deal to put push email on the iPhone. Say goodbye to that, if Microsoft takes over.
Yahoo's chief Yahoo! also made reference to several other projects Apple and Yahoo were going to bring out over the next few years. So long to those, too.
This would be a bad thing for everyone, except Microsoft.
Personally, I don't see why Apple handed over the push email portion of the iPhone to Yahoo in the first place. The most reasonable place for it to come from would have been .Mac. I don't relish having my emails branded with Yahoo crap after I just plunked down $500 or $600 for a phone. It may sound odd but paying the extra $100 for a .Mac account is actually more appealing since beyond beyond ad free, it would also ensure a generally smooth syncing of email between the Mac and the iPhone.
Personally, I don't see why Apple handed over the push email portion of the iPhone to Yahoo in the first place. The most reasonable place for it to come from would have been .Mac. I don't relish having my emails branded with Yahoo crap after I just plunked down $500 or $600 for a phone. It may sound odd but paying the extra $100 for a .Mac account is actually more appealing since beyond beyond ad free, it would also ensure a generally smooth syncing of email between the Mac and the iPhone.
HUGE second to that statement! I would think it would increase .Mac users too.
This is exactly what we/them/they DON'T need.
And this is exactly what Yahoo and MS could do to seal their own fates.
If anyone is going down - let MS be the ones to kill themselves without dragging other buy-out acquisitions down with them.
Not to mention - I don't want MS touching Flickr. Period.
I don't get the relation to Apple, really
Microhoo VS. Goopple
Microhoo VS. Goopple
Which is not Apple vs Microsoft vs Google.
Yahoo, Google and Apple are in the same boat, MS is in another, but I'd expect Yahoo to agressively resist, and MS shareholders to ask "why?"
50 billion is a huge chunk of change, and while MS can afford it, I have trouble seeing how this would be good for either company.
EDIT: And about the iphone, If this goes through, companies will be lining up to fill yahoo's shoes, Including Google.
gmail is a superior service, it is just not as big, which is the only argument yahoo mail has going for it.
I'd be in favor of it... my YHOO has been in the dumps.
This merger could be even more successful than AOL+Time Warner.
It boggles the mind!
Personally, I don't see why Apple handed over the push email portion of the iPhone to Yahoo in the first place. The most reasonable place for it to come from would have been .Mac. I don't relish having my emails branded with Yahoo crap after I just plunked down $500 or $600 for a phone. It may sound odd but paying the extra $100 for a .Mac account is actually more appealing since beyond beyond ad free, it would also ensure a generally smooth syncing of email between the Mac and the iPhone.
Apple needs friends and didn't want to alienate Yahoo by getting in bed with Google.
Apple already has Google's CEO on their board.
If they announced the iPhone with only Google integration, Yahoo would probably stop worrying about Mac compatibility and focus on Windows users.
Apple also owns the iphone.org domain.
It would be cool if the purchase of an iPhone also came with a iphone.org email account.
[email protected]
I don't get the relation to Apple, really
The iPhone uses Yahoo mail. That would suck if yahoo mail degraded to "worse-than-hotmail" status. It's headed in that direction. Yahoo needs to take a page out of Google's book and cut down on the invasive ads.
-Clive
The iPhone uses Yahoo mail. That would suck if yahoo mail degraded to "worse-than-hotmail" status. It's headed in that direction. Yahoo needs to take a page out of Google's book and cut down on the invasive ads.
-Clive
I have yahoo mail and they just informed me today that they are going to
start inserting advertisements in their mail service. yech!
"They're getting tired of being left at the altar," one banking source, who has recently had talks with Microsoft , told the Post.
I am visualizing Ballmer in a wedding gown, hooting and dancing like
a chimpanzee. Help me please. It is too early to start drinking.
Not to mention - I don't want MS touching Flickr. Period.
They won't be able to resist mangling it, I'm sure. This'll suck if it comes true.
"They're getting tired of being left at the altar," one banking source, who has recently had talks with Microsoft , told the Post. "They now seem more willing to extend themselves via a transaction to get into the game."
[ View this article at AppleInsider.com ]
You mean like what they did to SpyGlass, Sun, and Novell before this eh?
This is horrible.
This is exactly what we/them/they DON'T need.
And this is exactly what Yahoo and MS could do to seal their own fates.
If anyone is going down - let MS be the ones to kill themselves without dragging other buy-out acquisitions down with them.
Not to mention - I don't want MS touching Flickr. Period.
Damn it, I forgot Flickr was owned by Yahoo... and del.icio.us too....
Microhoo VS. Goopple
Sebastian
For one thing, Yahoo just did that deal to put push email on the iPhone. Say goodbye to that, if Microsoft takes over.
Yahoo's chief Yahoo! also made reference to several other projects Apple and Yahoo were going to bring out over the next few years. So long to those, too.
This would be a bad thing for everyone, except Microsoft.
I can promise you, Apple have different partners lined up if Yahoo dropped out of the race cough Google cough. It would suck to have to reprint all the marketing materials but as Johnny Mozzarella noted, I am sure they chose Yahoo! so as not to alienate them. Would they have rather chosen Google? My bets are yes