18 February 2008

Microsoft combines with Yahoo: Will it work?

The rumors are true. In the recent weeks, the business and the media world have been shaken with the news of the Microsoft and Yahoo possible merger. Will the join forces between these two internet giants can beat Google. Inc? Microsoft and Yahoo have discussed a possible merger that would pair these two respective strengths for years in order to get in step with the booming online-advertising market. With Yahoo just decline a $44.6 billion offered by Microsoft, how can this offer be finalized?. Such a deal would create the most dominant force on the Internet in terms of advertising. Also, it would also join the young and hip crowd, Yahoo and a more old and conservative crowd, Microsoft. Together they can attract wider audience who can be benefited in terms of the news and the entertainment coverage. I have therefore decided this week to explore the blogosphere to further understand what bloggers feel about the merger between Microsoft and Yahoo. The first post I found was by Laura Ries called The Origin of Brands Blog: Micro-Hoo?!. Her entry discusses the drawback of this merger and she believes that the combine forces would not be beneficial for them. The second post was published by newsday.com and it is called "Yahoo-Microsoft merger could benefit the Web users" by Richard J. Dalton JR.
His comments contradict Laura Ries' point of view about this issue. Each of their comments has its own strength and weaknesses and it is just give better understanding about this merger. I have offered my comments on their posts below and also on the authors' blogs.


The Origin of Brands Blog: Micro-Hoo!?
Comment:
Firstly, your blog is very straight forward and easy to understand with the points by points outline. Your honest opinion is much appreciated because this is such a big issue that can make a whole difference in our world. However, I dont agree with Laura that Microsoft and Yahoo merger will not work because both companies need each other. They need to combine power to expand their business as whole. I think the move will benefit both companies because Yahoo is losing market share to the mighty Google and Microsoft MSN 'Market Place' is not moving anywhere. By combining the two forces, Microsoft is going to move to the second ranking in Search Engine Marketing market and Yahoo will have all the capital back up from Microsoft huge pile of money in developing more advance SEM, therefore both companies will have better ground to compete with Google. I dont agree with Laura first point of view that combining two different cultures are not necessarily going to work. Regarding culture, if they keep the names, people will not even know the difference before or after merger, so people will not worry about it. They both can keep their current company's environments and somehow combining the crowds of each company to attract wider audience as a whole. The information given on the net will also be expanded and that will be beneficial for many internet users. If we compare Microsoft and Yahoo agaisnt Google and YouTube, I think they both have similarities which is two giant companies want to expand their business by buying smaller businesses that already been established. Yahoo has been in the business much longer than YouTube, and they both are in the stage where they need help from other companies to survive and expand. Again, business decision is like gambling, even though you already do your best to analyze and predict; sometimes the outcomes are unpredictable. For me, it is still a best bet for Microsoft to buy Yahoo since it will give credits for both companies.


"Yahoo-Microsoft merger could benefit Web users"
Comment:
I strongly agree with all of your comments and you give strong evidence for every statement you offer. I acknowledge your opinion in this issue and support your point of view in this recent big issue in the Internet world. In your first sentence you said that, "The possible merger will benefit the internet users" is extremely true because for an active internet users like myself, having the two companies combined together will give us more advance and entertaining information from the net. Each company has its own strength and perspectives and by combining them together, it will set a bigger goal to satisfy us as internet users. It will also provide a good competition for Google who now is taking over the search engine market by more than fifty percent of users. Like you said, competition is a good thing in the business world, it will provide us with better outcomes from each company because they are always going to be competing for the best. You also said that, "Google has no significant competition in certain areas". However, if the merger is succesful, Microsoft and Yahoo can be a big threat for Google in other aspects of the technology world such as cell phones and softwares. I also support your opinion that if both Yahoo and Microsoft stands alone to compete with Google, it would not been an even competition because Google is already having a head start in the search engine market. However, by combining both companies, they have a better chance to compete with the gigantic Google engine search. Even though Yahoo just declined the $44.6 billion offer, I agree with you that Microsoft somehow will work out a better deal to have Yahoo to accept and finalize the offer. Let just hope in the near future, both companies can agree in one term, that is, the price.

1 comment:

A.R.T. said...

This is a very opinionated topic and I think that it’s a good choice on your part to choose to write about this since there are so many different perspectives on what the companies should do. You seem to be very knowledgeable about this merger and you have firm beliefs about what you think should be done, and I think that comes across clearly in your comments on the other blogs. The comments that you gave were not only opinionated but I’m sure that they will be respected and appreciated by the bloggers that you gave them too because it furthers the discourse on your subject. Other than that, there were some minor issues with your post that I would like to bring to your attention. Some of the wording was a little awkward throughout the post and that could be due to some proofreading errors which can be fixed easily. It just made reading a little difficult at times because I would have to reread a line or two to understand what was being said. For example when you say, “Her entry discusses the drawback of this merger and she believes that the combine forces would not be beneficial for them”. It’s a bit confusing what you are saying but after reading on I could decipher the meaning. The links that you use were a little long also and I would suggest for next time maybe using the authors name as a link in itself which links to their about me profile on their blog so that I as a reader can see what this authors credentials are, and then use the blog title as a separate link to the post that you are referring to. One more minor thing that may make your blog more engaging is the use of graphics. The first one that you use in your first comment was good and got me interested in what you were going to say, but the second one wasn’t as interesting so it kind of drew my attention away from the post because I wasn’t as drawn in as I was with the first. Other than that it was a really good post and very interesting to read overall and I look forward to reading what you post next.

 
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