It’s not often I get to call a media relations contact for a major company and be the first to inform him of a major news event involving his client. That’s how closely Microsoft’s management held its decision to make its “unsolicited” offer for Yahoo!
It was fairly well known that Microsoft had been interested in such a deal for some time. And equally well known that some of Yahoo!’s most senior managers were cool on the idea.
What’s changed?
Well, Yahoo! made a major move to beef up its search-advertising business one year ago and about that same time, Microsoft made an acquisition in the Internet advertising space. Still, neither company had made much of a dent in Google’s huge market share lead.
So, Microsoft, judging by today’s offer, is willing to pay a big premium to entice Yahoo! shareholders. And Yahoo!, at least judging by its “we’re going to seriously consider it” response today, may figure the bid is too good to pass up.
Even so, the combination would only have a 30% share, compared to 75% for Google in this rapidly growing business.
Stay tuned.
Comments
I am curious about how Microsoft is reacting to the Murdock bid for Yahoo. How are they going to counteract that? Really, I can't see the Yahoo culture as a good fit with Murdock. He is the total antithesis of the liberal california culture that I thought Yahoo represented. They would be a far better fit with Microsoft. Is this just to up the ante for Yahoo? I hope Yahoo comes to the party and goes with Microsoft - they aren't that bad when you consider the alternative - Murdock.