Friday, May 4, 2007

Breaking News - Microsoft pursuing Yahoo for merger



New York Post and the WSJ.com reported today (4 May 2007) of a possible merger between Microsoft and Yahoo to combat the growing influence of Google . The rationale of the merger would be to compete with the scale and the search capabilities of Google and the failure of the Panama search engine ,which has widening the gap between Yahoo and Google and coupled with Google's plan to develop web based software which directly competes with Microsoft Office , makes it imperative for Microsoft to react now .

Charlene Li analyzes the possible implications of the merger and opines that while on paper there are synergies in the merger , but the combination (Microsoft+ Yahoo) may not be able to deliver the goods that are the strategic intent of such a combination

1 comment:

Shreyasi Deb said...

Well am not sure...Yahoo! has been spurning Microsoft's advances to love making for quite sometime now. and yes the lack of synergy might be a big-big issue, a greater pit fall than what these guys might be in, right now!