Friday, May 4, 2007

Microsoft buying Yahoo?

Rumors are flying

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)
Total Internet population 100 100 N/A
Google 47.5 48.1 0.6
Yahoo 28.1 28.1 0.0
Microsoft 10.6 10.5 -0.1 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: