From Microsoft Subnet editor, Julie Bort: Well, I'm eating crow. Just last week I declared the Microsoft/Yahoo deal to never amount
to anything more than a rumor. Today, Microsoft says it is willing to shell out $44.6 billion to acquire the search site. Microsoft and Yahoo make a powerful pair to compete with Google, whose search engine dominance is becoming increasingly "evil." (Complaints abound as to exactly how Google ranks its search results -- and even how it ranks the placement of its keyword-sensitive ads.) This merger, should it go through, will make it a lot more likely that the EU will give the OK to the Google/DoubleClick marriage.
A story in Network World reports on a conference call with Microsoft on Friday:
"Microsoft expects the market for online advertising to almost double in size over the next three years, from $40 billion in 2007 to $80 billion by 2010. A merger will allow it to realize economies of scale and reduce capital costs as it addresses this market, it said.
I can't help to root for the underdog. In this case I think the underdog is the Microsoft/Yahoo team against No. 1 seed Google. Go team!
See also:
Buzzblog on Microsoft/Yahoo deal.
GoogleGal on Google/DoubleClick gets the nod
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OH Boy are you. I've been
OH Boy are you. I've been waiting to see when Microsoft was finally going to hit the Acquisition button and just acquire Yahoo. Way back when they actually partnered together on the Search advertising through both MSN and Yahoo serving up ads through Overture together but in 2004 that all changed when MSN thought they would bring it all in house. Which has been sooo successful (sarcasm).
It was only a matter of time before these two decided to team up to try to beat down Google. I don't think it will work but together they will be better then they are apart at this point.
Predictions for 2008
Hey, this was one of my predictions for 2008. Facebook is next.