Microsoft offers to BUY Yahoo

  sl2 11:51 01 Feb 2008
  Forum Editor 13:25 01 Feb 2008

I hope Microsoft knows what it's doing - Google isn't about to roll over and play dead while Microsoft/Yahoo sneaks in and pinches market share. The resulting battles really will be a clash of the titans.

Good news for Yahoo shareholders though, Yahoo profits have fallen sharply of late.

  bstb3 14:31 01 Feb 2008

Google is so embedded into people's psyche these days it is going to take a massive effort to change that. It will be an interesting battle, hard to see how it can be bad for anyone bar the shareholders of the loser (if there ever is one).

Im not sure how the law works, but presumably yahoo software could be bundled with new Vista O/S's should the deal go through?

Yahoo's instant messenger service is quite a competitor to MSN also, I wonder if this would be affected?

  sunny staines 15:08 01 Feb 2008

do not know of anything yahoo that is worth having.

  VNAM75 15:59 01 Feb 2008

Summed up quite well by the BBC

"One word explains all of Yahoo's troubles: Google. While Yahoo invested in content to lure its audience, the search engine rival simply focused on delivering what users really wanted: good search results".

  silverous 19:07 01 Feb 2008

What do Yahoo do that makes them worth 22 billion?

I can't remember the last time I, or anyone I know, graced their search engine with our presence.

How do you take on a product that has become a verb for what it does - 'to google' for something?

I can only imagine their 23% market share is built on PCs/ISPs bundling them as the default search engine and people not being bothered to change.

How do you beat Google at search? I think you'd need to return better results, or make an engine easier to use, or tie people to using your engine. If they can't do the first two they'd better be pretty good at the latter!

I guess it isn't only about search. Google would seem to be the one company Microsoft can't beat thus far and one that perhaps presents a threat in other areas outside search, maybe this is about gaining scale and momentum to have another go at that.

  al7478 22:20 01 Feb 2008

i too wonder as to your first question. wish i knew more about such things.

  lisa02 23:17 01 Feb 2008

Yahoo seems to be tied to all manner of programs and when installing you have to watch out for the box to untick or you end up with a browser add-on.

  al7478 23:46 01 Feb 2008

good point. theyre not too popular with me for that reason.

  silverous 11:28 02 Feb 2008

I'm pretty sure you'll find google toolbar also tied up in a good few programs.

I read yesterday that this is also about building of R&D capability, Yahoo have large numbers of software engineers which will add to Microsoft's capabilities.

Perhaps I was a little unfair about what Yahoo do to be worth so much, as well as Search they also have Mail, Instant Messaging, and other offerings. Their revenue in 2006 was $6.4billion (approximately £3.2billion pounds... so someone is using their services!

Now, what will the combination be called?

Yahcrosoft ?

I suspect having built such a big brand we won't have heard the end of the Yahoo name for a while, but eventually I'd imagine it will be merged into Microsoft/MSN/Live.

  jz 21:45 04 Feb 2008

Doesn't make any sense to me. Microsoft has internet search already.

That said, how on earth Google has done so well always amazes me. Up until IE7, if you typed some search words into the IE address bar, it took you to the Microsoft search site. Given that Microsoft had over 90% of browser use at the time, you would have thought that Google would have gone bankrupt.

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