Threatening Microhoo
by Tatiana Hadarova
Last Thursday Microsoft made an great offer for Yahoo's shareholders to buy this Internet portal for 44.6 billion USD. It means that Microsoft offers 62% more for each share than it was at the time the company declared their offer. The main reason of this megafusion might probably be to ability to compete No. 1 Internet searching portal Google. But according to analysts, Google does not need to feel threatened by this, because Microhoo, as the possible fusion is called, would still have only one third of the market share. The discussion between Microsoft's and Yahoo's managements has lasted for year and six months now and both companies now think that there is no other way but to fuse. The management of Yahoo hoped that their shares would grow up but after a year there were no changes and probably there is no other solution for the company. In the meantime, people close to Yahoo said that the company received many other offers from potential suitors. The management also speculated about breaking up the company to sell it easier. But analysts said that the smaller fragments of company would probably cost more than the whole Yahoo. Last Sunday Google stated, that potential buy of Yahoo by Microsoft might pose threats to competition, but Microsoft's general counsel Bradford L. Smith said: "The competition of Microsoft and Yahoo will create a more competitive marketplace by establishing a compelling No. 2 competitor for Internet search and online advertising." In U.S., it might be easier for Microsoft and Yahoo to persuade antitrust policy to allow this transaction, but in Europe for officers of European Commission Microsoft is still symbol for unwanted predatory.
related story: http://www.nytimes.com/2008/02/04/technology/04yahoo.html?_r=1&ref=technology&oref=slogin
| by Tatiana Hadarova for PocketNews (http://pocketnews.tv) |
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Edited by Federica Paddeu
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