Showing posts with label Yahoo. Show all posts
Showing posts with label Yahoo. Show all posts

Microsoft and Yahoo, Love Is in the Air, Still

The two companies re-enter talks
A Microsoft takeover of Yahoo is dead from the perspective of both companies, but the same is not valid for the negotiations between the two giants. The Redmond and Sunnyvale based companies have re-entered talks at the end of the past week, announcing that they have discovered a common ground that would permit the creation of an anti-Google alliance on the same front.

"In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business," Microsoft announced via a statement issued on Sunday May, 18. Initially, the Redmond giant offered $31 per share for Yahoo, namely $44.6 billion, on February 1, 2008, through an unsolicited acquisition proposal.

Yahoo's answer came on February 11 and involved not so much a "no," as an invitation to raise the initial bid. In the final stages of what turned out as failed negotiations, Yahoo's board of Directors were looking to obtain $5 billion more for the company than what Microsoft was willing to pay, namely no more than $50 billion. As a consequence, the Redmond company announced on May 3 that it was officially withdrawing its takeover bid. However, the Microsoft and Yahoo forced dance is evolving into an elegant ballet, where a partnership could yet take form.

"Microsoft is considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo. Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo or discussions with shareholders of Yahoo or Microsoft or with other third parties," the Redmond company stated.

Microsoft, through its representatives failed to add anything extra to the official statement. Details are scarce at this point, but it seems that Microsoft is really after the eyeballs loyal to the Yahoo brand and its web properties. In this context a scenario in which the Redmond company would serve advertisements on Yahoo's infrastructure, and next to the Sunnyvale giant's search results.

"Yahoo has confirmed with Microsoft that it is not interested in pursuing an acquisition of all of Yahoo at this time. Yahoo and its Board of Directors continue to consider a number of value maximizing strategic alternatives for Yahoo, and we remain open to pursuing any transaction which is in the best interest of our stockholders. Yahoo!'s Board of Directors will evaluate each of our alternatives, including any Microsoft proposal, consistent with its fiduciary duties, with a focus on maximizing stockholder value," reads Yahoo's response to Microsoft's statement.

Microsoft emphasized the fact that even if the negotiations with Yahoo have entered a new stage, there is absolutely no guarantee that the two companies will be able to indeed agree on a common course of action. Or that a transaction will be finalized.

Source: news.softpedia.com

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Opera Mobile Abandons Yahoo and Embraces Google

Opera announced that it has made Google the default search engine for its mobile browsers, Opera Mobile and Opera Mini. From now on, mobile users that work with Opera can access Google's search engine directly from the browser's start page, for a quick and easy way to get the information they need.

The new mobile collaboration between Opera and Google covers all global territories except Russia and the Commonwealth of Independent States (no idea why is that), and includes all of Opera's standard mobile browsers.

Opera might have chosen the G-search-engine over Yahoo (which was made the default search engine on Opera's mobile browsers a year ago) following countless complaints from consumers who were unhappy they couldn't make Google the default browser page. Moreover, Google has been the default search option on Opera's desktop browser for many years, so it's somehow natural that it now became the default for mobile browsers too.

"Google and Opera have established a valuable relationship over the years and we look forward to continued collaboration on mobile products," said Jon von Tetzchner, CEO, Opera. "With 2008 poised to be the year the mobile Web goes mainstream, Google and Opera are extending this collaboration to give our users immediate access to the quality and convenience of Google's search results. We're excited to extend this productive relationship and we hope that the nearly 100 million people using our mobile products will agree."

Opera Mini and Opera Mobile are the most popular mobile browsers in the world, being used on more than 100 million handsets. Opera Mini users, for example, browse more than 1.7 billion pages monthly. Both Opera's mobile browsers offer advanced features, specially adjusted for cell phones, including Opera Zoom, Opera Link and Speed Dial.

While Google recently introduced a new and improved search engine for mobile phones, Yahoo doesn't seem to care too much about the mobile side of the Web. Should we say "too bad", or should we be happy that Google won another pseudo-battle with Yahoo?


Source: news.softpedia.com

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Google Players Better Than Yahoo's and Microsoft’s

The first ever SMX Search Bowl took place last night and had teams from Google, Yahoo!, Ask.com, Live Search and the SEM All Star Team line up at the starting line. A fierce battle they fought, dodging trick questions prepared by Search Engine Land, but in the end the cup was all the teams wanted and everything else was just insignificant. Sort of.

Like the title says, Google won, and did that by a landslide. At the other end of the dais was the SEM All Star Team that at one point had a negative score. 50 questions were asked, and all were more or less difficult (mostly more), and the first team that buzzed had a chance to answer. In case they got it right, points were awarded, else they were subtracted from the total.

Google's team consisted of Matt Cutts and Paul Haahr, Senior Staff Software Engineer. Microsoft's team was made up of Nathan Buggia, Lead Program Manager, and Natala Menezes, Product Manager at adCenter. Ask.com had Peter Linsley, Senior Product Mgr, Search Technology, and Gary Price, Director of Online Resources. The SEM team had Todd Friesen and Ian Lurie.

Here are a couple of questions, as were posted on Search Engine Land:

The Sunday Times sent a legal request for which news search engine to stop crawling its content:
a) Excite NewsTracker
b) News Index – the right answer
c) Wired Newsbot

Which search engine first sold sponsored links?
a) GoTo
b) Open Text – the right answer
c) Excite

Don’t be fooled that they have b) as a correct answer, it wasn’t that easy. Too bad the final results weren’t posted, I really would have enjoyed seeing the exact difference, as the search engines sent their best qualified people at the event. I guess it was a measure of the employees’ levels of knowledge about their own companies as well as the others’. Glad to see Google coming first, else they couldn’t really justify their dominant position on the market.


Source: news.softpedia.com

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Yahoo Buzz Leaker Dealt With

Yahoo! Buzz was launched on Monday with a lot of buzz. Being leaked information about on repeated occasions, everybody had their hopes high about the Yahoo! branded Digg clone. It turns out that negative publicity isn’t all that constructive. I remember reading at some point in college a quote saying that bad publicity is still publicity, and having the name being heard is better than having it surrounded in silence.

Buzz’s situation is quite the opposite of that. Being waited for by the online community as the savior of Yahoo!’s dark gray standing at the moment, it failed. Not only failed, it did that miserably. The feature it was leaked as being its strong point, namely the option to buzz up some piece of news that you enjoyed and consider relevant and interesting, is a letdown. Valleywag quotes AllThingsD’s John Paczowski saying that "posted a story 90 minutes ago, and readers are telling me they can't buzz it up." It was unflattering to Yahoo!, maybe that’s why.

A commenter on the article, claiming to have some inside information from Yahoo!, said that General Counsel Michael Callahan hunted the man responsible for the public’s expectations about the newly launched site and "sent out a note saying that the person who leaked Buzz had been found and dealt with." That sounds like some medieval punishment occurred, or some Omerta breaking was involved.

You might remember Michael Callahan from the scandal in which he involved Yahoo! in October – November last year, after turning in a dissident to the Chinese government. In a way, one might say that the poor fellow now in jail has also been dealt with, but the terms there were completely different.

Will Buzz be Yahoo!’s savior? Not likely, by the way it looks right now it’s more like a nail in its coffin.


Source: news.softpedia.com

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Yahoo Is Not the Only Item on Microsoft’s Shopping List

Yahoo is not, even by far, the only item on Microsoft’s shopping list. Microsoft Chairman Bill Gates made it clear that, although he gave his blessing for the acquisition of Yahoo, a strategy cooked by Chief Executive Officer Steve Ballmer, the Sunnyvale Internet giant wouldn't become the company's exclusive focus in its race after Google. And while Yahoo will undoubtedly shorten the distance which separates Microsoft from the incontestable leader of the
search engine and online advertising markets, by a consistent share, the Redmond company continues to climb its way toward Google slowly, through its own efforts, but also via additional acquisitions.

Of course that in comparison with the $44.6 billion price tag that Microsoft stuck to Yahoo, all other take-overs seem anodyne. Case in point: YaData, a developer of tools designed to identify unique customer segments. The financial details of the acquisition have not been made public, but it is reported that Microsoft paid between $20 and $30 million.

"The purchase of YaData brings the Israeli R&D center into the field of online advertising, which is undoubtedly one of Microsoft’s most strategic fields," said Moshe Lichtman, President of the Microsoft Israel R&D Center. "This is a great example of how Israeli technology has considerable value that is contributing to our most important areas of development. In recent months, I have become familiar with YaData's top quality personnel, and I am convinced that their contribution to the Israeli R&D center and to Microsoft globally will be significant."

Microsoft's Israel R&D center in Herzliya will grow with the addition of the YaData team, and the technology will be added to the Microsoft’s Advertiser and Publisher Solutions group. "YaData fully believes in the potential of behavioral targeting to enhance the value of online advertising for publishers, advertisers and users," said Amir Peleg, chief executive officer of YaData. "Microsoft has the resources to unlock the potential in YaData’s technology and create a truly innovative online advertising solution. We’re excited to see what the future holds."


Source: news.softpedia.com

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Yahoo - Video Relaunched, YouTube Competitor

What is Yahoo! thinking? One of the products it has worked best on was launched without any fanfare and mediums were kept mostly in the dark surrounding the event. Yang needed the attention to show the shareholders that he was head of a strong and organized company, not one that couldn’t dwell on its best features.

Trying to copy Google’s Video, probably, Yahoo!’s
counterpart was supposed to be a showcase for professional content, while the user created videos were to be sent to Flickr, as Stewart Butterfield announced last summer.

Butterfield, Flickr co-founder, announced last summer that "soon" there will be video hosting options available for his creation, but soon afterward he got on the paternity train and took some time off. Playing the YouTube card might not prove to be as successful, because Google’s video sharing service already has the fan base and it’s not likely it will move to Flickr just for the fun of it. Yahoo! should probably try and capitalize on the fact that video and photos are now probably being shot with the same handheld device, so it would be a waste of time to browse to a different site to upload the output of one device.

Yahoo! Video is looking rather stylish, and the one thing I noticed it has above YouTube is color. If users are presented with the option to choose based on aspect, it would be a no-brainer.

After user-created content will be sorted out and taken somewhere else, Y! Video will be a Hulu contender with full rights. Or at least that is its reported intention, but reality will probably come to bite the Sunnyvale-based company in the behind, as it kind of did in the past two years. Nothing went the way it was supposed to, the only two products still flying their colors with pride being Yahoo! Mail and Flickr.


Source: news.softpedia.com

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What’s New in Microsoft Land: 11 – 15 February, 2008

Yahoo! put an end to all the speculations around Microsoft’s unsolicited bid on Monday. The answer was a big no, thank you, and the motivation was that the Sunnyvale-based company’s board considered that the offer greatly undervalued Yahoo! The proposal of $44.6 billion, or $31 per share, was forwarded to the Internet giant on the first of February.

The rejection couldn’t go unanswered, so Steve Ballmer, Microsoft’s CEO issued a statement saying, among others, that "A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore,
the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal."

The last phrase gave birth to a lot of controversy regarding what all of those "necessary steps" might be, a hostile takeover being what everybody instantly thought about. Nobody dared compete with Microsoft head on regarding the Yahoo! deal, but several companies reportedly had some talks with the Internet company about eventual alliances that would save Jerry Yang’s firm from being forced to sell. Google was the first, but its interest won after realizing that regulators would not allow it to happen and AOL came second, but that was mostly the rumor mill working its magic. The most serious of all was News Corp, and messages being sent back and forward between Murdoch and Yang were reported in the press.

Tuesday, the Redmond-based company officially confirmed that Windows 7 and Office 14 would not be confined to desktops only. Eyeing the tremendous growth of its online counterparts from Google in particular and some other companies, Microsoft decided to implement its own branded strategy with Software plus Services.

"On the consumer side, though, our work will be anchored in a few core things. Windows and Office need to embrace the Internet and go live, and we’ve got good efforts underway and in market for both Windows Live and Office Live," CEO Steve Ballmer said after, the previous day, Chairman Bill Gates had underlined the importance of blending the desktop-based Office System with services in the clouds.

The peer to peer copyrighted file sharing scandal that has been roaming the Internets (© George W. Bush) for the past month or so, with renewed vigor, convinced Microsoft to conduct a survey among students between the seventh and tenth grade, and its results found that most of them were not aware of the laws in state. Wednesday was educational day for the Redmond-based company, so it launched an interactive web site, http://www.mybytes.com for the young to develop their own intellectual property and assign usage rights, by mixing music online to create a custom riff for downloading as a ringtone, according to Press Pass.

49 percent of the respondents said that they were not familiar with the laws and the penalties for such crimes, while only 11 percent admitted to knowing "very well" what the regulations were. The rest answered that they were aware that illegal downloading wasn’t a good thing and said that some rules were clear, but rather in a big haze.

"Widespread access to the Internet has amplified the issue of intellectual property rights among children and teens," said Sherri Erickson, global manager, Genuine Software Initiative for Microsoft for Press Pass. "This survey provides more insight into the disparity between IP awareness and young people today and highlights the opportunity for schools to help prepare their students to be good online citizens."

Valentine’s Day didn’t deliver on the love, but it compensated with the best known surrogate: promotion. Not one, but fourteen, and all at the top. It was the 14th after all, so they kind of had to go with that number.

These came to reflect the company’s commitment to maintain and furthermore built a strong and dynamic management team across its unique portfolio of businesses. "Along with attracting world-class talent from outside the company, one of my top priorities is growing Microsoft’s existing leadership team. […] Each of these executives will play a critical role in leading Microsoft into the future. Today’s promotions are a result of their ability to think strategically on a global scale, the respect they’ve earned from their peers, customers and partners, and their significant contributions to the company," said Steve Ballmer, chief executive officer of Microsoft.

The seven executives that were promoted to senior vice president are Chris Capossela, Kurt DelBene, Antoine Leblond, Andy Lees, Satya Nadella, S. Somasegar and Bill Veghte, and the seven executives promoted to corporate vice president are Walid Abu-Habda, Brad Brooks, Larry Cohen, Steve Guggenheimer, Scott Guthrie, Roz Ho and Brian Tobey. Best of luck to them all!

On Friday, news came out about long time security giants Symantec, McAfee and Trend Micro being bested by Microsoft’s alternative, the lesser known Forefront, in terms of performance. It was widely less resources consuming, using 60 percent of what Symantec threw at it, the AntiVirus Corporate Edition 10.2. Compared to the same product, Microsoft Forefront proved to be able to deliver 13 times faster boot times and more than twice greater speed at quick scans.

This study was conducted to test Forefront Client Security’s system performance compared
to the three leading competitive products. Testing was carried out during April and May 2007. The study shows that Microsoft Forefront Client Security’s results were favorable, compared to those of two of the leading competitors. It uses few system resources on servers and is comparable to the leading competitor in scanning times on both older and newer machines, and also when scanning .cab files. West Coast Labs also found that when malware was discovered, Microsoft’s bandwidth usage on clients was the lowest of all the four products," revealed a member of Microsoft Switzerland.


Source: news.softpedia.com

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Yahoo Board to Reject Microsoft Bid

Yahoo Inc.'s board plans to reject Microsoft Corp.'s unsolicited $44.6 billion offer to acquire the Web giant, a person familiar with the situation says.

After a series of meetings over the past week, Yahoo's board determined that the $31 per share offer "massively undervalues" Yahoo, the person said. It also doesn't account for the risks Yahoo would be taking by entering into an agreement that might be overturned by regulators. The board plans to send a letter to Microsoft Monday, spelling out its position.

Yahoo's board believes that Microsoft's is trying to take advantage of the recent weakness in the company's share price to "steal" the company. The decision to reject the offer signals that Yahoo's board is digging in its heels for what could be a long takeover battle. The company is unlikely to consider any offer below $40 per share, the person said.

It's unclear whether Microsoft would be willing to pay such a premium, which would increase the value of its original cash and stock bid by more than $12 billion. The rejection comes as Yahoo's board has been considering various other scenarios, including a search advertising partnership Google Inc. Yahoo's directors are still considering that and other options that would safeguard the company's independence, people close the company say.

Yahoo's board appears to be betting that Microsoft doesn't want to "go hostile" and try to acquire the company against the wishes of management and the board. Such a course could cause deep resentment among the rank-and-file engineers whose cooperation is crucial to the company's success. A hostile takeover could also make it more difficult to get the deal past regulators if Yahoo management tries to convince authorities that the deal is anticompetitive.

Yahoo has taken "poison pill" provisions to prevent an unwanted takeover. Microsoft would likely have to oust the board in order to overturn them.

Source: The Wall Street Journal

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How Google Could Keep Yahoo From Microsoft

Eric Schmidt, the chief executive of Google, is offering Yahoo — and, it seems, anyone else — whatever help he can to make sure Yahoo isn’t swallowed by Microsoft.

What sort of help could that be? Lots of money for the right to sell ads on Yahoo’s search results, most likely. Google would have a very hard time buying Yahoo outright, for antitrust reasons. But if Google offered a long-term guarantee for advertising revenue on Yahoo’s search pages, there would be a pot of money that could help finance a bid for Yahoo by a private equity firm or a media company. Yahoo also could try to stay independent by cutting such a deal and giving part of the money from Google back to shareholders in the form of a share buyback or special dividend.

There is a lot of money at stake. Since Google earns more for every search than Yahoo does, such a deal would immediately add money to Yahoo’s bottom line.

Here is a back-of-the-envelope way to look at how much is involved. Google agreed to pay a reported $3.5 billion to sell advertising for IAC/InterActiveCorp’s Ask.com unit. In December, according to comScore, Ask handled 1.1 percent of all search queries worldwide, while Yahoo had a 12.8 percent share. That means Yahoo has 11.6 times the volume of Ask. If you multiply the $3.5 billion figure by 11.6, you get a theoretical $40 billion over 5 years. That may be a bit high, as Yahoo had a total of $6 billion in ad revenue in 2007, split between search ads and graphic display advertising.

Regardless of the exact numbers, there are tens of billions of dollars in play that could be used to enable all sorts of financial engineering meant to keep Yahoo out of Steve Ballmer’s hands.

I’m not so sure any of these is likely to happen. What’s more, they are almost all really bad ideas, if you look at the long term value created by what is now the Yahoo business.

The reason gets to the challenge of running Yahoo, as well as Google, Microsoft and AOL: A company can make the most money at the highest margins if it has the biggest network of advertisers, the biggest network of sites on which ads run, and the largest group of sites it owns and operates. But those economic forces push companies to almost unmanageable sprawl.

Advertisers value both reach and effectiveness. That means they will pay higher rates for their ads to be shown to the most targets; broad media, like network TV, get a premium over targeted media like cable channels. But in search in particular, they do also value ads that are shown to the most likely prospects. Having the biggest network, and the right technology, allows a company like Google to offer both broad reach and effective targeting. As a result, ads on Google command a premium over ads on other ad networks, like Yahoo’s.

The way to get the biggest network is to negotiate for the rights to sell ads on lots of other sites. But the problem with this is that ad networks like Google give away about 80 percent of the money spent by advertisers to the sites on which ads appear. For sites that the ad company owns outright —Google’s own search pages, for example — it can keep all of the ad revenue. That’s why AOL’s new management has rejected, so far, proposals to sell off its portal business so it can concentrate on its growing advertising business. When it looks at this, it realizes that owning sites on which it can place ads is the best way to reap the profits from the ad network.

All of this means that if Yahoo splits its ad network from the rest of the sites it operates, it will erode the value of both halves of its business.

Lots of very smart people disagree with this assessment. Many current and former Yahoo executives, and lots of others in the Valley, argue that Terry Semel made a terrible mistake in trying to take on Google in search, and that it would have been better to double down on parts of its site that were most conducive to brand advertising, where it had been the leader. It certainly is true that the race to build Yahoo’s search engine and then the Panama search advertising system diverted resources from what could have been other initiatives that didn’t compete head on with Google.

But for Yahoo not to be in search or in search advertising, I think, would consign it to a much smaller role in the future. Search is so much a part of how people navigate the Web that it is hard to imagine being a successful Web portal without search at the center. Moreover, there is no longer a strict difference between search ads — sold in a huge auction — and brand ads — sold by a sales force over lunch. Rather, there is increasingly a smooth gradation, with even some graphic ads for big brands placed through automated systems and, soon, advertising exchanges. I suspect — although I’m not sure — that one big system that can handle all sorts of ads will have advantages over narrower advertising networks.

That’s why the combination of Microsoft and Yahoo in theory has the best likelihood of creating real value. It will have the second-largest ad network and a vast array of sites on which to place its own ads. Microsoft, moreover, has resources to pay for the development of lots of corners of the business at the same time in a way Yahoo did not.

The caveat here is management: If Microsoft and Yahoo cannot actually build sites and ad technology the market wants to use, none of this theoretical profit will wind up in the bank. And one of the few advantages of a complex arrangement that gives Yahoo’s search business to Google is that the remaining company would be easier to run.

Sorce: http://bits.blogs.nytimes.com

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Google Works to Torpedo Microsoft Bid for Yahoo

In an unusually aggressive effort to prevent Microsoft from moving forward with its $44.6 billion hostile bid for Yahoo, Google emerged over the weekend with plans to play the role of spoiler.

Publicly, Google came out against the deal, contending in a statement that the pairing, proposed by Microsoft on Friday in the form of a hostile offer, would pose threats to competition that need to be examined by policy makers around the world.

Privately, Google, seeing the potential deal as a direct attack, went much further. Its chief executive, Eric E. Schmidt, placed a call to Yahoo’s chief, Jerry Yang, offering the company’s help in fending off Microsoft, possibly in the form of a partnership between the companies, people briefed on the call said.

Google’s lobbyists in Washington have also begun plotting how it might present a case against the transaction to lawmakers, people briefed on the company’s plans said. Google could benefit by simply prolonging a regulatory review until after the next president takes office.

In addition, several Google executives made “back-channel” calls over the weekend to allies at companies like Time Warner, which owns AOL, to inquire whether they planned to pursue a rival offer and how they could assist, these people said. Google owns 5 percent of AOL.

Despite Google’s efforts and the work of Yahoo’s own bankers over the weekend to garner interest in a bid to rival Microsoft’s, one did not seem likely, at least at this early stage.

For example, a spokesman for the News Corporation said Sunday night that it was not preparing a bid, and other frequently named prospective suitors like Time Warner, AT&T and Comcast have not begun work on offers, people close to them said. They suggested that they did not want to enter a bidding war with Microsoft, which could easily top their offers.

A spokesman for Time Warner declined to comment, as did a spokesman for Comcast. A representative for AT&T could not be reached.

In the meantime, people close to Yahoo said that the company received a flurry of inquires over the weekend from potential suitors. Some people inside Yahoo have even speculated about the prospect of breaking up the company. That could mean selling or outsourcing its search-related business to Google and spinning off or selling its operations that product original content, these people said.

“Everyone is considering all kinds of options and deal on search is one of them,” a person familiar with the situation said.

One person involved in Yahoo’s deliberations suggested that “the sum of the parts are worth more than the whole,” arguing that its various pieces like Yahoo Finance, for example, could be sold to a company like the News Corporation for a huge premium while Yahoo Sports could be sold to a company like ESPN, a unit of the Walt Disney Company.

Executives at rival companies were less optimistic about such a breakup strategy. “No one can get to a $44 billion price,” one executive at a major media company said, “even if you split it into a dozen pieces.”

In making its bid for Yahoo, Microsoft is betting that past antitrust rulings against it for abusing its monopoly power in personal computer software will not restrain its hand in an Internet deal.

In the United States, a federal district court in Washington ruled in 2001 that Microsoft had repeatedly violated the law by stifling the threat to its monopoly position posed by Netscape, which popularized the Web browser. The suit, brought during the Clinton administration, was settled by the Bush administration. But as a result of a consent decree extending through 2009, a federal court and a three-member team of technical experts monitors Microsoft’s behavior.

In 2006, for example, after Google complained to the Justice Department and the European Commission that Microsoft was making its MSN search engine the default in the most recent version of its Web browser, Microsoft modified the software so that consumers could easily change to Google or Yahoo.

In Google’s statement on Sunday, it said that the potential purchase of Yahoo by Microsoft could pose threats to competition that needed to be examined by policy makers.

Google’s broadly worded concerns lacked detailed claims about any anticompetitive effects of the deal, and the company did not publicly ask regulators to take specific actions at this time.

“Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC?” asked David Drummond, Google’s senior vice president and chief legal officer, writing on the company’s blog.

Yahoo and Microsoft declined to comment Sunday on Google’s actions. Earlier on Sunday, Microsoft’s general counsel, Bradford L. Smith, said in a statement: “The combination of Microsoft and Yahoo will create a more competitive marketplace by establishing a compelling No. 2 competitor for Internet search and online advertising.”

Google’s effort to derail or delay the deal on antitrust grounds mirrors Microsoft’s own actions with respect to Google’s bid for the online advertising specialist DoubleClick for $3.1 billion, announced in April.

The strategy is not surprising, considering that any delays would work to Google’s benefit. “Google can tap into all of the ill will that Microsoft has created in the last couple of decades on the antitrust front,” said Eric Goldman, director the High-Tech Law Institute at the Santa Clara University School of Law.

The outcome of any antitrust inquiry will hinge, in part, on how regulators define various markets. Microsoft-Yahoo, for instance, would have a large share of the Web-based e-mail market, but a smaller share of the overall e-mail market.

“The potential concern would be that Microsoft, if it acquires Yahoo, could do on the Internet what it did in the personal computer world — make technical standards more Microsoft-centric and steer consumers to its products,” said Stephen D. Houck, a lawyer representing the states involved in the consent decree against Microsoft.

Yahoo has not made a public statement about the proposed deal since Friday, when it said it was weighing Microsoft’s offer as well as alternatives and would “pursue the best course of action to maximize long-term value for shareholders.”

Carl W. Tobias, a law professor at the University of Richmond in Virginia, said an antitrust review of the Microsoft-Yahoo deal could take a long time and “may well bleed into a new administration with an entire new view on antitrust than the Bush administration.”

Source: www.nytimes.com

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BREAKING: Microsoft to Buy Yahoo for $44.6 Billion

In its race to become the runner-up on the search engine and online advertising markets, Microsoft is about to give Google a little something to chew on. The Redmond company is looking to buy Yahoo for no less the $44.6 billion. Microsoft has just announced the proposed acquisition of Yahoo for $31 per share. According to current estimates, the transaction is valued at no less than $44.6 billion and Microsoft is to offer both cash and stock. Yahoo
has been increasingly losing its position on the search engine market, as well as its audience eroded by social networks.

The latest financial results posted by the Sunnyvale Internet giant feature a consistent loss, with profit dropping to $660 million for 2007, down from $751 million in 2006. Yahoo was even preparing to lay off a reported 1,000 workers of its 14,300 workforce, after the poor financial results of the past year. Microsoft's proposed acquisition offers shareholders a 62% premium to current trading price for Yahoo! The Redmond company has presented its proposition to Yahoo's Board of Directors.

"We have great respect for Yahoo!, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market," said Steve Ballmer, chief executive officer of Microsoft. "We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners."

"Our lives, our businesses, and even our society have been progressively transformed by the Web, and Yahoo! has played a pioneering role by building compelling, high-scale services and infrastructure," said Ray Ozzie, chief software architect at Microsoft. "The combination of these two great teams would enable us to jointly deliver a broad range of new experiences to our customers that neither of us would have achieved on our own."

Yahoo has failed to officially respond or comment on the acquisition proposal from Microsoft. Still, it is clear that the Redmond company will not hesitate in the least to cough up no less than $44.6 billion for Yahoo. The aims is of course the online advertising market, which is estimated to double in the next couple of years, from $40 billion in 2007 to nearly $80 billion by 2010. Microsoft revealed that the move to buy Yahoo was made as a measure to counter Google and its increasing dominance over the online advertising market.

"The combined assets and strong services focus of these two companies will enable us to achieve scale economics while reaching R&D critical mass to deliver innovation breakthroughs," said Kevin Johnson, president of the Platforms & Services Division of Microsoft. "The industry will be well served by having more than one strong player, offering more value and real choice to advertisers, publishers and consumers."

Source: news.softpedia.com

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