Home >> Digital >> Article Presented By, IDMA - Mathrubhumi.com presents e4m's IDMA 2018, gold partner - Republic TV           Techमंच - exchange4media presents Techमंच - Digital Conference 2018, gold partner - Mathrubhumi.com

Google and Microsoft lock horns over multi-billion dollar Yahoo! deal

05-February-2008
Font Size   16
Google and Microsoft lock horns over multi-billion dollar Yahoo! deal

Microsoft’s proposal to take over Yahoo! to fight Google’s dominance in the online space just got more interesting. The hostile takeover bid launched by Microsoft has already received some flak from its competitor Google, which finds the multi-billion dollar deal “troubling” and has even questioned Microsoft’s intentions. On the other hand, Microsoft has maintained that the combination of Microsoft and Yahoo! would create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.

Following Microsoft’s aggressive foray into owning the online search and advertising space, Steve Ballmer, in a letter to the Yahoo! Inc Board of Directors, proposed to acquire all the outstanding shares of Yahoo! common stock for per share consideration of $31, representing a total equity value of approximately $44.6 billion.

On Sunday, February 3, 2008, David Drummond, Senior VP - Corporate Development and Chief Legal Officer, Google, questioned Microsoft’s intentions on Google’s official blog. “Microsoft’s hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, or one company taking over another. It is about preserving the underlying principles of the Internet – openness and innovation.”

Drummond further accused Microsoft of using its competitive advantage in the personal computer market to gain “inappropriate and illegal influence over the Internet” and said that it was likely to try to do the same if it acquired Yahoo!. He accused the company of a “legacy of serious legal and regulatory offenses”. Moreover, EU competition regulators have launched a series of probes against Microsoft, accusing it of abusing its dominant market power.

The proposal would allow Yahoo! shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the total consideration payable to Yahoo! shareholders consisting of one-half cash and one-half Microsoft common stock. The offer represents a 62 per cent premium above the closing price of Yahoo! common stock on January 31, 2008.

Meanwhile, arguing that the merger would create healthy competition for Google, Brad Smith, General Counsel for Microsoft on Sunday said in a written statement on the Microsoft website, “The combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.”

Rubbishing Google’s allegations of becoming the largest player through the merger, Smith further said, “Today, Google is the dominant search engine and advertising company on the Web. Google has amassed about 75 per cent of paid search revenues worldwide and its share continues to grow. According to published reports, Google currently has more than 65 per cent search query share in the US and more than 85 per cent in Europe. Microsoft and Yahoo! on the other hand have roughly 30 per cent combined in the US and approximately 10 per cent combined in Europe.”

Meanwhile, it is rumoured that Yahoo! management is also considering revisiting talks it held with Google several months ago on an alliance as an alternative to Microsoft’s bid. The Internet is also abuzz with reports that the Yahoo! Board has also received a procession of preliminary contacts by media, technology, telephone and financial companies.

Whatever be the case, the ‘Big Three’ of the Internet domain are going to fight out a close battle, which will surely have major implications in times to come. The impact may not be felt in the early stages in India, but with digital playing such a huge role in our day-to-day lives and crores of rupees being put in, these deals will surely make a mark in the history of the Indian digital space.

Also see:

International: Microsoft offers to buy Yahoo! for $44.6 billion; Yahoo! Board to evaluate proposal

Tags Digital News

In an interaction with exchange4media, PC Musthafa, CEO & Co-Founder iD Fresh Food shares how the brand deals with competition and marketing strategies followed by them.

Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer

Tim Castree is all praises for his team in India and trusts it to be a result of “an excellent execution of agency’s global strategy” headed by Kartik Sharma

Siddharth Dabhade says Criteo’s technology allows brands to engage with shoppers, create relevant experience on retail apps, thereby driving sales and profits

right
left
EXCHANGE4MEDIA’S LOUDEST.IN HOSTS INAUGURAL EDITION OF MUSIC INC. IN MUMBAI EMINENT JURY CONGREGATES TO PICK IMPACT’S 40UNDERFORTY ACHIEVERS PORTER PRIZE & INSTITUTE FOR COMPETITIVENESS RECOGNIZE STRATEGIC ACUMEN IN COMPANIES DELHI AD CLUB-SAARC AWARDS 2018 RECOGNIZE EXCELLENCE ACROSS CREATIVE, MEDIA & DIGITAL AGENCIES BSNL & CALL2ACTION COMMUNICATION INDIA LAUNCH MOBILE ADVERTISING PLATFORM, INFOMO IN NEW DELHI CHILDREN’S RIGHTS ACTIVIST KAILASH SATYARTHI LAUNCHES BOOK ‘EVERY CHILD MATTERS’ SENIOR JOURNALIST VIJAY TRIVEDI LAUNCHES BOOK ‘YADA YADA HI YOGI’ BASED ON YOGI ADITYANATH EMINENT JURY CONGREGATES TO PICK IMPACT’S 40UNDERFORTY ACHIEVERS PORTER PRIZE & INSTITUTE FOR COMPETITIVENESS RECOGNIZE STRATEGIC ACUMEN IN COMPANIES DELHI AD CLUB-SAARC AWARDS 2018 RECOGNIZE EXCELLENCE ACROSS CREATIVE, MEDIA & DIGITAL AGENCIES MARK TULLY, OTHER JOURNALISTS HONOURED BY MUMBAI PRESS CLUB AT ANNUAL REDINK AWARDS TALENTED YOUNGSTERS GET TO PRESENT THEIR WORK BEFORE STALWARTS IN THE AD INDUSTRY INDIA RADIO FORUM 2018 RECOGNIZES EXCELLENCE IN RADIO INDUSTRY OFF THE CUFF HAS JOURNALIST ARUN SHOURIE IN CONVERSATION WITH SHEKHAR GUPTA IN MUMBAI IAA HOSTS FIRST INDIAA REGIONAL AWARDS (TELUGU) IN HYDERABAD BREAK THE CEILING TOUCH THE SKY 2018 SEES OVERWHELMING INDUSTRY PARTICIPATION 10TH EDITION OF ABC EUREKA AWARDS IN MUMBAI CELEBRATES WORK OF PARTNER AGENCIES EMINENT JURY PICKS LOUDEST’S 100 MOST POWERFUL INDIAN MUSIC BUSINESS LEADERS MODE LOFT BY SABGROUP LAUNCHES SIGNATURE MENSWEAR POWER DRESSING CLOTHING LINE TOP MARKETERS DISCUSS ART AND SCIENCE OF EFFECTIVE LISTENING @PITCH CMO SUMMIT 2018, DELHI

Guest Column: Co-founder & Strategy Director at Reptile FX dissects the endless possibilities of how an explainer video can meet various communication objectives

‘Do What Moves You’ campaign aims to shine a spotlight on the brand’s belief in the power of self-expression

Mathrubhumi Media School will offer PG diploma courses in print & broadcast journalism