Thoughts 09 Feb 2008 04:13 pm
Microsoft may have to rethink their offer for Yahoo.
The initial offer was based on cash and stock. Now Yahoo shares have risen to nearly the $31 offered and M$ shares have fallen something on the order of 12%, which means they may have to adjust the stock portion of the deal.
The Yahoo stock price increase was predictable, but I bet ole Bill didn’t count on his stock falling.
Not that it matters.
If M$ is going to get their web services into the majors, they need the talent and some of the infrastructure offered by Yahoo.
Let us not forget that MSN search is in third place, and search results sell advertising. Ala the Google click-through model.
If they get to number two, and follow Google’s example, they will be able to direct searches to their own assets, and to the sites of their paying customers.
Directed searches are the current “big thing.” Google says these searches are simply to help us find what we need more easily, but have you every noticed the number of sites that you are directed to that may have lousy SEO, but are using high volume Google adwords.
There’s money in them thar searches.
The trouble with being a cynic is that it gets old being right all the time.