Microsoft aim Yahoo to face Google in search and online advertising

São Paulo – MS takes advantage of Yahoo’s weakness after misdefinition of investments, and advocates partnership not to continue to lose money in advertising.

The six letters are not explicitly quoted in the announcement in which Microsoft formalized its intention to buy Yahoo for $44.6 billion on Friday (01/02), but there is no denying – Google is deeply involved in trading.

"Surely, the fight will get closer between Google and Microsoft. Someone will finally hit Google in the face," explains Alexandre Kavinski, director of new markets and SEM products in Digital Media.

At a Microsoft conference held among international journalists shortly after the announcement, Steve Ballmer claimed to have talked to Yahoo's board in 2007 to enable the purchase, but preferred to wait until the right time arrived.

More about Microsoft and Yahoo:
> Opinion: Marcelo Coutinho evaluates the business
> Blog: read Ballmer's letter to Yahoo
> Survey: What do you think of the business? Vote
> Yahoo actions go up 50%
> Blog: AOL Time Warner 2.0?
> Ballmer: alternative to facing Google

Ironically, the "right moment" quoted by Ballmer coincides with announcements that Yahoo would have to face cuts of up to a thousand employees from February, given the "counter wind" faced by the company that translated into the fall in profits, and the departure of the presidency of the board of Terry Semel, who had already abandoned the position of CEO in June 2007.

Yahoo's inability to follow innovations presented by then-born Google and the focus Microsoft has always spent on its software has caused the searcher founded by Larry Page and Sergey Brin to jump ahead in the search, which ended up giving Google an advantage in online advertising.

Read the Remaining of the Matter in: IDGnow!


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