Microsoft’s Bid for Yahoo!

by Darren on February 2, 2008

Sure, yesterday was the biggest financial news in the Internet industry for some time. The MSN and Yahoo! have been discussing some sort of a merger or partnership for a while but the price tag of $44 billion sounds a little crazy. I mean what would it solve for the two companies and how will this help the search companies compete against Google? Microsoft just recently purchased Aquantive advertising firm for something like $6 billion and should now have the products and services necessary to compete with Google.

Since the Aquantive purchase I’ve become a believer in the MSN network and I’ve written rich media proposals with a very healthy proportion of that spend going to MSN. So if I’m writing them aren’t the other Internet marketers writing similar proposals? Shouldn’t that prove a turn around for Microsoft and has Microsoft given the Aquantive purchase a chance to pay off?

There could be many reasons why MSN and Yahoo! can’t compete with Google in the search marketing front, but the bottom line is Google’s large share of Internet traffic. As much as MSN and Yahoo have done in the past they just can’t seem to catch that critical mass of Internet traffic necessary to compete against Google. Will this MSN and Yahoo! marriage make any difference? I don’t think it will but who knows. At this point we don’t even know if the deal will actually happen and if it does only time will tell.

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