Microsoft Will Win Yahoo
Microsoft bid $44 Billion for Yahoo this morning. Although this seems like a large premium, Yahoo shareholders should welcome this offer. The much hyped Panama ad platform that Yahoo rolled out last year to counter Google’s aggressive capture of search ad market share, has not performed well. Microsoft has a far superior suite of interactive ad technologies that extend from the PC to the TV to Mobile. What Microsoft does not have in MSN is traffic, which Yahoo still maintains. Yahoo’s institutional shareholders are on the phone to Jerry Yang this morning telling him to make a deal. This could even be a plus for Yahoo’s corporate partners like AT&T that are also in business with Microsoft for TV and mobile ad software. Finally, Jerry Yang’s notion of adopting the Facebook strategy of an open application layer, could be enhanced because Microsoft is already a shareholder and ad software supplier to Facebook.