Microsoft to buy Yahoo rumors yesterday caused a sensation on Friday turn from United States sources, the two companies are not talking about mergers and acquisitions, but cooperation, so that competing with Google in search and advertising markets, narrow the gap with Google.
According to Singapore Joint morning post under reported, by mergers and acquisitions rumors stimulus, Yahoo shares Friday highest Shi rose has 19%, reached has near a years to of highest level. However in analyst on two home company merged of possibilities made questioned Hou, Yahoo shares began fall, but still made three years to maximum gains (2.8 dollars or 9.9%), closed reported 30.98 dollars. Microsoft is fell 0.41 dollars, reported 30.56 dollars.
Analysts noted that the two companies are more likely to discuss forming a joint venture, or other forms of cooperation.
According to inside sources have confirmed that the negotiations between the two companies have long cool down. one well-informed, discussions of the two companies are still at the preliminary stage, and are mainly focused on building partnerships, rather than merge.
United States Web site of the New York post on Friday quoted earlier sources reported that DoubleClick after lose to Google in a bidding war, pace accelerates of Microsoft to buy Yahoo. Microsoft has Yahoo again with their formal discussions, hopes to buy the Internet giant.
It is said that Microsoft and Yahoo have in the past few years many informal negotiations. statements per capita but Microsoft and Yahoo declined to comment on the latest takeover rumors.
It was alleged that a few months ago, Microsoft had to submit to the Yahoo bid, but ultimately was rejected by Yahoo. Wall Street analysts predicted that Microsoft want to successfully acquires Yahoo, bid may need to reach nearly US $ 50 billion.
One banking source pointed out that: “many times failed in a bidding war, has Microsoft suffered setbacks. now more than ever, Microsoft hopes a successful transaction, to increase their competitiveness in the Internet market.”
Acquisition in investing heavily at the same time, Google has also developed a variety of network application software, launched a direct challenge to Microsoft Office. analysis suggested that, in this case, Microsoft in addition to face the challenge of Google, has had no choice.
In terms of Yahoo, the company in February this year has finally launched a new “Panama” ad system. Despite Yahoo’s first-quarter results disappointing, but industry insiders pointed out that this does not show “Panama” was unsuccessful.
Analysts predicted that if Microsoft can successfully buy Yahoo, the search advertising market share will increase to 27%, near Google’s 65% is still a big gap between. However, at the same time, Microsoft’s share of the online advertising market as a whole will also be a large upgrade, between May and the Google gap narrowed to 13%.
More is to be noted that, after the Microsoft acquisition of Yahoo would occupy monopolistic advantage in Web traffic. and in a sense, the network traffic is advertising revenue.
The other hand, the Internet experts say, even if Microsoft does, the combined companies may not be able to stop the Google development. analysts surveyed, Yahoo and Microsoft get a will not be in the Internet and Google search this area of the core loss of status.
In addition, the two companies after the merger of search technology may not be able to achieve the level of Google on the search relevance. analysts say whether Yahoo or Microsoft, their ad serving technology is good enough. standard and poor’s analyst Scott Kessler said: “this disadvantage, the two companies, merged into one company still is.”
However, Deutsche Bank analyst Jeetil Patel said that Microsoft may be able to solve Yahoo’s technology challenges faced by one of the few companies.
According to a variety of research data, Yahoo and Microsoft combined will account for United States 38%,Google of the total search volume will still be about the ratio of 60% dominant.