TechSuave

Finally, the 3 month long epic saga has ended and what was the end result? They are back to where they were 3 months back. I feel this whole buying Yahoo thing was more of a gimmick maybe to show Google that Microsoft are still powerful and can still rule the internet. Well, atleast it did seem that way but I don’t think Google really bothered much and must have had a nice laugh being a spectator in all this.

Microsoft and Yahoo could not negotiate a just sale price and so the talks and the deal turned out to be a failure. Microsoft had made an original bid of $42.3 billion and even raised it to $47.5 billion. Either that or a $33 per share price from a $29.40 per share price. Yahoo did put a price tag on themselves which is $53 billion or $37 per share which is actually double of Yahoo’s stock price. All this happened just days before Microsoft said that they wanted the deal done and dusted and would even go in for a hostile takeover.

Microsoft mainly wants Yahoo for its good Advertising network inorder to atleast square off with Google’s booming ad market. Now with takeover plans by Microsoft set aside for the moment, can Yahoo recover from its financial crisis, cos if they don’t I am pretty sure Microsoft will bid again.

Yahoo’s AD network is second best behind Google, so if Microsoft somehow manages to get Yahoo, only then will they succeed partially in dethroning Google considering the fact that they know they can’t beat the Google search engine cos almost every living soul on the planet who operates a computer uses Google Search. But having said that, all these time waste by both Microsoft and Yahoo would have given Google plenty of time and incentives to be even more stronger.

So Should Microsoft bid again for Yahoo sometime later this year or Should they go and bid for AOL?