Technology 04 May 2007 01:04 pm

Microsoft Badly Wants Yahoo

by Sean Hackbarth

Microsoft wants to be a bigger fish in the large, online sea. Google has been trouncing them on search and subsequently on online advertising. Google is now moving into the relm of business software, a Microsoft cash cow. The New York Post reports Bill Gates and the gang have had enough and want to buy Yahoo:

While Microsoft and Yahoo! have held informal deal talks over the years, sources say the latest approach signals an urgency on Microsoft’s part that has up until now been lacking. Now, Microsoft shows fear.

The new approach follows an offer Microsoft made to acquire Yahoo! a few months ago, sources said. But Yahoo! spurned the advances of the Redmond, Wash.-based software giant. Wall Street sources put a roughly $50 billion price tag on Yahoo!.

“They’re getting tired of being left at the altar,” said one banking source who has recently had talks with Microsoft. “They now seem more willing to extend themselves via a transaction to get into the game.”

Microsoft spending $50 billion would be unprecedented for the company. They’ve been sitting on billions in cash for years. It put fear in their competitors until Google started reeling in the billions.

Gary Sattler at Bloggingstocks.com is ripping the Redmond giant:

My interpretation of Microsoft’s subliminal message here is that it couldn’t win the game so it’s going to pay the crippled kid down the street to come play with it. The only problem here is that the crippled kid isn’t all too interested in playing, and Microsoft doesn’t even seem to realize that it’s a cripple.

TechCrunch’s Duncan Riley observes, “It certainly is a strange time when Microsoft accuses Google of anti-competitive behaviour one day, then activily seeks to acquire a leading competitor for the sole purpose of trying to compete with Mountain View based uber company the next.”

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