IT Security Blog

Microsoft to Yahoo…… Let’s Talk Again…… Seriously

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It seems that the shrug Yahoo gave Microsoft a couple of weeks ago seemed as if it were only yesterday and yet, here they are again. They are again making public a willingness to talk to the internet search company as the big “M” is yet to acquire a business that would rival the amount of ad profits as Google’s. The decision to shrug off the bid by Microsoft irked many of Yahoo’s investors that the search company had to pay attention.
What the hell does Microsoft from Yahoo, something to fight Google’s advertising profits through Adsense and AdWords that is driving them crazy enough to engage in another round of talks (even if it means doing it under the tables). This is one avenue that Microsoft has not ventured into and their seeing the profits Google earns from advertising alone is reason enough. Having Google place ads for companies on your sites gets them premium and cheap ad time and space without the company having to shell out many of their hard-earned cash and in this day of recession, everybody wants the easiest way to earn money.
Icahn who has control of around 5% of Yahoo wishes to kick-out Yang (one of the search company’s founders) and is engaging Microsoft in secret talks this week to get the details right and laid out. Upon hearing the news, the company releases the answer that states:

“If Microsoft and Mr Ballmer really want to purchase Yahoo, we again invite them to make a proposal immediately,” Yahoo said in a statement.(BBC)

Microsoft on the other hand is getting competition from Google who has also expressed interest in getting into bed with Yahoo (which might be the reason why Microsoft’s snortin’ like mad back at the table) but is raising concern with US lawmakers who are monitoring their talks due to a successful partnership that would result in over 80% control of the US’s internet search ad market.

Microsoft’s Bid for Yahoo

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Is Microsoft looking for another area of investment? Well, it sure looks like it, for they have just placed a bid on Yahoo which may be a sign of them trying to diversify and try to catch some action on the search engine part of the internet. The well publicized bid will make Microsoft more part of everyday computing and the internet that it already is. This move would bolster their already well-known market dominance with their operating systems such as Vista (the latest addition to their Windows series of operating systems), Xbox (their bid to get some share of the gaming market previously dominated by Sony with their PlayStation Series) and the many other products such as Microsoft Office.

Bill Gates has left the company onto another’s hand which spelled the end of his prominence in the PC and computer industry but he is not expected to fade out soon for he is still looked at by many as the father of the Windows empire. If they indeed succeed with their bid for expansion, they will add yahoo to their already diverse list of markets on the IT industry which they have a cut of. This would also add more hatred to those people termed as the rebels of the IT world who have hated windows and it’s tight grip on the internet and computing industry as a whole.

Hackers have made it known again and again that they will continue to pester and bring headaches to the company which has resulted in many well publicized attacks causing the company millions of dollars in lost revenue. Their problems with the Xbox and Xbox live, also proved to be a hard pickle to swallow for the problems of the Christmas season when their high-tech gaming network system ground to a halt, to the dismay of many a players and subscribers. They managed to get out of it promising a free game for all their clients which should have instead earned revenue. More would be expected on Microsoft as they enter a new year filled with challenges and hurdles but they will always be a presence on the computer industry. This might also turn out to be a bad choice for they already have their resources stretched too thin with successive problems with their products. They might have to stick with what they do best which is to focus on their OS systems rather that diversify and expand. Well, we’ll see this year if their strategy for expansion works or not.