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Yahoo Bid shows Microsoft on the Ropes
Ponca City, We Love You writes "One day after the announcement of Microsoft's plan to buy Yahoo, there is an interesting piece from the NY Times analyzing the reasons behind Microsoft's bid and proposing that the bid is a tacit, and difficult, admission that Microsoft did not get its online business right and that online losses continue to mount while Google makes billions in profit. Microsoft "finds itself in a battle where improving its search algorithms and online ad software is not going to be enough," writes the Times. With the Yahoo bid Microsoft is trying to buy a big enough share of the market to be a credible alternative to Google with online advertisers. "This shows just how worried Microsoft is by Google," says David B. Yoffie. "Microsoft has faced competitive threats before, but none with the size, strength, profitability and momentum of Google.""
I'm not a big fan of either Microsoft or Yahoo(gmail user)but a MicroHoo will be in a better position to compete with Google. Which is good in that it will force/encourage/scare Google into further innovations. Say what you will about Microsoft but if they are committed to this (meaning they will continue to throw time and money at it) they can be a market force. The original X-box brought a lot of naysayers but look at the 360. Everyone laughs at the Zune but they continue to improve it and more importantly drop the price. Americans are first and foremost cheapskates.