Tuesday, April 1, 2008

Microsoft buys Yahoo so Google buys Microsoft in hostile takeover

Microsoft finally acquired Yahoo. All the silence we have been hearing was confidential discussions between Yahoo's executive team and Microsoft's executive. It really didn't even take that long, but most of us expected that Microsoft would own Yahoo in the long run.

At this point, Microsoft tells us that they will leave Yahoo as a standalone property. They did not yet decide if they will consolidate their efforts on the search front. But I suspect they will group the two search teams together and join forces in building out an engine that can seriously compete against Google.

Of course, Google is not happy. Google, in fact, is taking the Microsoft approach and placed a bid of $50 per share for Microsoft. Google is going to use the hostile take over approach to buyout Microsoft, Google's biggest ever acquisition.

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