What makes Microsoft want to buy Yahoo?

For information analysts, it is not surprising that Microsoft wants to buy or merge with Yahoo. For them the most important information is when this will happen.

In the past many times Microsoft and Yahoo had meetings that did not officially discuss the merger. Currently meetings like this are still in progress. Representatives from Microsoft and Yahoo declined to comment on the information posted in the press.

The New York Post and The Wall Street Journal all claim that the motivation for Microsoft and Yahoo to think of a merger is the rise of Google's "empire" in the online search and advertising market.

According to the press, another reason why Microsoft and Yahoo want to push the consolidation process is that Google recently spent $ 3.1 billion to buy the "giant" in DoubleClick online advertising.

Analysts are not new to the merger discussions between Microsoft and Yahoo.

" Negotiations are completely real ," Sterling Market Intelligence analyst Greg Sterling said. " Before Google's acquisition of DoubleClick, surely both Microsoft and Yahoo must think of doing something to combat this threat ."

Benefit more than harm

" An alliance between Microsoft and Yahoo cannot satisfy the market. What the market wants is a bold move that can change the game. I think Microsoft acquires Yahoo as a reasonable possibility. most ".

In view of analyst Rob Enderle of Enderle Group, Google is a rival to Microsoft and Yahoo. Sooner or later the two companies will "have the right answer" for Google's growth and also help themselves to get a better presence on the Internet.

" Google has become a big force in the online advertising market. Both Microsoft and Yahoo are struggling to compete with Google. Power consolidation is the best way to counter Google's power ."

However, Mr. Enderle said that a big contract between Microsoft and Yahoo is relatively difficult. " Some members of Yahoo are not doing very well and will be a weak company before Microsoft in negotiations ."

Merging with Microsoft will help Yahoo bridge the gap with Google in terms of capacity, Jennifer Simpson analyst of Yankee Group Research said. " In the eyes of so many people Yahoo is not really Google's competitor ."

In general, analysts believe that a merger deal between Microsoft and Yahoo will bring more advantages than disadvantages.

" What Yahoo has is that Microsoft does not have a place in Silicon Valley. I think this is the deciding factor for Microsoft to buy Yahoo. The consolidation will give Microsoft what the company does. want , "said expert Simpson.

First of all, Microsoft will benefit directly from the growing business experience on Yahoo's Internet platform. " Microsoft is actually just a technology company with mainstream products, Windows and Office ," said Jupiter Research analyst Emily Riley. " Meanwhile, Yahoo is an Internet company. A genuine dot-com company ."

There is no shortage of challenges

But analysts also say that to get a consolidated contract, both Microsoft and Yahoo will face many challenges. "Integrating a huge staff of different employees both in corporate culture and technology will not be an easy thing," said Sterling expert.

" Next is the" business size "problem. There has been a lot of concern about Microsoft dominating the software market, so what if Microsoft holds a big Internet company like Yahoo? "Analyst Simpson said.

Hoang Dung