Yahoo Microsoft Proposed Merger and Google’s Reaction
Monday, February 4th, 2008In today’s news, Google, Inc., has concerns about Microsofts proposed $42 billion acquisition of Yahoo and not for the reasons you would think. Google realizes there is more to this deal as it pertains to the worldwide internet search market. If Yahoo and Microsoft merge it would only account for 16% of the search engine market (which is no comparision for the 62% that Google holds). Google, Inc., opposition to the acquisition lays in the fact that Microsoft may try to incorporate the advanced online services Yahoo has developed into their Windows operating system setup; guiding new PC owners towards the services such as email and instant messaging. This move could stifle the innovations of other companies including Google.
Although Yahoo is currently reviewing the offer with their Board, most analysts believe there is little choice with its stock price near a 4 year low. The fact that Microsoft bid 62% above the market value of Yahoo indicates to some that this is a hostile bid. Most analysts doubt any other company will be able to top Microsoft’s offer.If Yahoo accepts, then both the U.S. and Europe antitrust regulators will need to review and approve the proposal, a process that could take up to a year. During that time Google may be able to setup plans for counteractive measures and better prepare for the merger.
Well that concludes our Tech News today so make sure to bookmark our site as we continually post new information.
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