Microsoft/Yahoo v’s Google - Clash of the Titans

If you have happened to be hiding under a rock for the past week of so, then you will have missed on learning that Microsoft has offered to buy the search engine company Yahoo for $44.6bn (£22.4bn) in cash and shares, which is 62% above Yahoo’s closing share price on Thursday. This came after Yahoo apparently declared that an additional $300m was required this year to try to revive the company, after it’s been struggling against Google & MSN. Microsoft’s Kevin Johnson stated that the combination of the two companies would create an entity that could better compete with Google, who currently dominates online search and advertising.

This isn’t the first time that Microsoft has offered to buy Yahoo. Last year they were in talks, but Yahoo remained firm that it’s new plans would keep them above water. Unfortunately though, the shares continued to fall.

However, Google isn’t very happy with this prospect, and competition authorities both in the US and the European Union would be likely to investigate the tie-up, if it should occur.

There also seems to be some concern among financial analysts about the price that Microsoft is offering, that its rather over the top.

If it does come to fruition, it’s going to be a clash of the titans. Which only spells out good news for us as they compete for throne.

Be interesting to see what happens with the affiliation with the TV networks in Australia. Nine + MSN … Yahoo+Seven … and I am sure I saw something last year about something between Foxtel & Google. It makes you wonder if you should be choosing alliances now.