Again, why does Microsoft want Yahoo
I;ve attempted to maintain my postings about MicroHoo to a minimum, as it;s hard to separate the posturing from your actuality.But after pondering this past weekend;s most recent back-and-forth ? where Microsoft offered yet again to buy Yahoo;s search business and Yahoo tried to convince the Redmondians to come back again and make another offer for the whole company instead ? I kept coming back to the original question about this whole transaction. Why does Microsoft really want Yahoo? (Or, more accurately at this point, Yahoo;s search business, since Microsoft;s days of wanting all of Yahoo thankfully seem to be over.)Update: Speaking of back-and-forth, here;s Microsoft;s take on what happened with Yahoo and investor Carl Icahn, which (not surprisingly) is quite different from Yahoo;s ? not to mention Icahn;s.One reason, in spite of CEO Steve Ballmer;s claim that Microsoft;s Live Search effort is going great guns on its own, obviously is Microsoft can;t grow its consumer search share beyond 10 percent or so. But why else does Microsoft want/need Yahoo?Ballmer & Co. are no longer claiming they want Yahoo;s brain trust (which is good, since more and more of Yahoo;s top talent had been laid off, has fled or is in the process of fleeing). Nor is Microsoft citing any longer the back-end infrastructure synergies that it would achieve by combining forces with Yahoo. Instead, as Ballmer stated it plainly at last week;s Worldwide Partner Conference, it;s really all about the ads:?The more customers you have, the better, actually, the set of advertisers you have, the better advertisers and people actually like the ads in search. There are a lot of places people don;t like ads, but in search ads actually help the experience. So if you put together our volume and Yahoo;s volume the thought was that should be a good thing.?What;s your take? Does Microsoft really want to buy Yahoo;s search business? Or are the repeated offers from Microsoft simply Microsoft;s hard-ball way of seeking revenge ? and ultimately scooping up a Yang-free Yahoo at a firesale price?
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