Microsoft buying Yahoo?
If you think about it, this deal makes a lot of sense: acquiring Yahoo! Inc, currently valued at approximately $44b, is a good use of Microsoft’s some $30b excess cash. According to SearchEngineWatch, this would give Microsoft a 38.6% share in Internet search business, putting it in a better position to compete with Google. The question is, given Google’s big lead, whether the regulators will still seek to block the MS YAHOO deal on the ground of anti-trust.
| U.S. Online Searches by Engine, January 2007 and February 2007 (%) | |||
|---|---|---|---|
| January 2007 (B) |
February 2007 (B) |
Change | |
| Total Internet population | 100 | 100 | N/A |
| 47.5 | 48.1 | 0.6 | |
| Yahoo | 28.1 | 28.1 | 0.0 |
| Microsoft | 10.6 | 10.5 | -0.1 |
| Ask.com | 5.2 | 5.0 | -0.2 |
| Time Warner | 5.0 | 4.9 | -0.1 |
| Source: comScore Networks, 2007 | |||
M&A and LBO are still white hot (if not getting even hotter) in the U.S:
- ABN Amro deal has been quite a drama, with half a dozen big banks gathered round the table.
- Murdoch is going after Dow Jones, the owner of Wall Street Journal.
- Reuters is approached today for potential takeover.
