Web Crunch

 Microsoft to buy Yahoo

Well this one could be one of the biggest take overs in the history of the online space if it actually does happen. Though it has been in the rumours since last year and even we have blogged about the possibility of Microsoft acquiring Yahoo till date there was no official confirmation of the same.

 But now Microsoft has officially made a 44 billion $ bid to take over Yahoo. The bid which will consist of cash and Microsoft stock, values Yahoo shares at $31 a share, a 62% premium on Thursdays closing price.

This interesting table from Techcrunch which kind of gives you a glimpse of what the Yahoo takeover by Microsoft may mean to their main competitor that is google.

The above chart clearly shows that Microsoft benefits the maximum when it comes to the US Search Market Share while in all other aspects it is far larger than yahoo. Microsoft has cited reasons like operational efficiencies and consolidation of manpower and knowledge for this bid. But from the above chart its fairly clear that this bid is to take Google on in the online advertising game as Microsoft had earlier acquired aquantive in response to google’s double click aquisition.

 Microsoft CEO Steve Ballmer also admitted that this acquisition was a move to make microsoft a more web based Saas (Software as a service) kind of company. So windows live and office live could be in the pipeline which directly compete with googles docs and spreadsheets.

- Henry

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