Monday, January 14, 2008

Microsoft + Yahoo! --> Google?

Will Microsoft acquisition of Yahoo! lead the combined entity get closer to Google?

A quick glance at the stats in the Search Domain for the Top 3 players shows*:
Google - 65.98%
Yahoo - 20.88%
Microsoft - 7.04%.

Well, this is the multi-billion dolor ($$$) question that only time or the informed sources will be able to tell. Meanwhile, it is for us to speculate and watch the game.

Yahoo! acquisition will definitely help Microsoft close the gap and and boost its desperate game plan to dominate and out do Google!

A look at some more stats
Yahoo! has a market capitalization of approximately $31 Billion.
Yahoo's 1/3rd stake in Yahoo! Japan is $9 Billion.
Yahoo's 10% stake in is worth approximately $1.7 Billion.
Yahoo's 40% stake in's parent company, Alibaba Group, is an estimated of $8 Billion and $16 Billion.

The current valuation of Yahoo based on the Nasdaq listing does not fully reflect Yahoo’s investments, which if realized would give Yahoo a valuation upwards of US$45 Billion.

But, at $45 billion, is this game worth playing?

Another Billion dolor question! But what about the Anti-trust? Is Microsoft prepared to fight another suit?

*Latest Hitwise report of U.S. Searches (Dec 2007)
Read few more interested articles on this topic at:
2006 CNN Article:

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