Microsoft bought Yahoo !: Perfect acquisition?

Google has grown rapidly and it seems that this hasn't stopped making Microsoft and Yahoo! have to worry. And will a merger between these two giants happen?

Yesterday, May 4, two US newspapers, the New York Post and the Wall Street Journal, all reported that Microsoft was pursuing a deal to buy Yahoo! Inc. - a power that can help the company compete with rivals Google.

Shares of Yahoo! rose 14.6% to $ 32.20 in electronic trading yesterday, while Microsoft shares fell 1.4% to $ 30.53.

According to the two newspapers, internal negotiations between the two companies have been carried out for many years, however, at this time, when Google is increasingly "expanding", Microsoft really Want to get Yahoo! 's signature soon.

Peter Lobravico, vice president of Wall Street Access, said: " This issue has been mentioned for a long time, since Google started showing its power. I can't imagine a perfect contract. If that becomes a reality, you won't be able to find a buyer who is bigger than Microsoft and although this acquisition may face many political and legal issues, we know that , it will eventually be passed . "

Meanwhile, the New York Post said that a few months ago, Microsoft had offered to buy Yahoo !, however, without Yahoo's consent. The paper also offers a price for this acquisition of $ 50 billion and claims that negotiations between the two giants are still ongoing, and that investment bank Goldman Sachs also participates in the plan. . Until this time, Goldman Sachs still refused to comment.

Market value of Yahoo! has increased from US $ 38 billion to US $ 45 billion just before these articles were released. And the "value" of Microsoft giant is nearly $ 300 billion. Currently, both Yahoo! and Microsoft has not yet made any comment.

Threat from Google

Obviously, this negotiation is a sign of Google 's power and it is also a sign that Microsoft and Yahoo! There are so many problems. A successful acquisition could help Microsoft attract more advertisers to its online business.

Analysts do not think the acquisition will come true because Yahoo! and Microsoft has a completely different culture, besides, Microsoft is often interested in small companies with "cool" technologies, not giants.

However, both companies are facing many threats from Google.

The market share of this web search leader is growing and Google's growth rate is 3 to 4 times faster than Microsoft and Yahoo !.

Google's first quarter 2007 revenue increased 63% compared to the figure of the previous year.

Last month, Google acquired DoubleClick Inc. for $ 3.1 billion in order to go deeper in the graphic advertising market. In this acquisition, Microsoft was the one who was outdone when paying for DoubleClick for only $ 2 billion.

Next week, Yahoo! Terry Semel will go to Seattle to speak at Microsoft's online advertising conference. After the speech, Terry Semel will answer questions from Joanne Bradford - Microsoft's media director.

If Microsoft decides to buy Yahoo !, it will be the biggest acquisition in the history of the software giant.

So far, the biggest acquisition Microsoft has made is acquiring Navision - a business software maker - in 2002 for $ 1.33 billion.

Investors in Microsoft say the acquisition may not be good news for the world's largest software maker, because it must be acknowledged that Microsoft's recent investments in services Online is a failure.