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44.6 Billion & Yahicrosoft

February 6, 2008

Money! - Grove Pashley-CorbisFor this post I am simply going to cut directly to the heart of the matter: Microsoft is interested in purchasing Yahoo for 44.6 Billion. According to the CNET News.com article, there is an offer of either stock (Microsoft’s I am assuming) or cash to shareholders. With that much money being offered, I am sure in some way it would make you think that Yahoo is worth something. However, according to it’s own tumultuous financial history, Yahoo has been moving away from the world of profitability and into the realm of reduced profit, something that I am certain scares many a Yahoo shareholder. Even a little less than a year ago Yahoo was having this profitability problem, so the we-aren’t-really-making-as-much-money-anymore approach to business they have been using is nothing new. Yahoo has been losing market share to Google left and right, along with advertiser dollars and consumer eyeballs. Equally important, “Yahoo It” never really caught on quite as well as the Google verbiage.

Speaking of Google, I’m certain that being in the lead is nice, but seeing the second-place team suddenly purchased by one of the largest, richest and most powerful tech companies in the world… well, that would make anyone wary. I, just like Google’s Coach Drummond, would call for drug tests too.

Speaking of mergers, or as my friend Joel says, ‘wergers’ (when you combine normal words to make an even cooler one that contains enhanced meanings of the originals), what would you call a Microsoft and Yahoo business name mash-up?
My choice?
Yahicrosoft.

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One comment

  1. Indeed only shareholders have something to win from Micro$oft-Yahoo! merge.

    This is really a bad news for the web & for Yahoo! employees (many of them will be “sacrified” in the name of
    “eliminating redundant infrastructure and duplicative operating costs”)
    ;o(



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