This comes as no surprise since it’s been a long time coming. It’s sad to see the 250 million user base search engine….no wait portal….or is it mash up….sorry….ad network(this identity confusion is what got them in trouble in the first place) be it’s even clearer path to disappearing.
Financials:
Smart buy for MS? Based on the simple buyout premium formula: Bid price-(1 year revenue x 5) = Premium paid.
Based on the 2007 financial results $7 billion in revenue:
$44B($7B x 5 ) = $11 B
(Please note that these number might be misleading, since Yahoo’s market cap before the offer was $25B, thus making the premium a lot higher).
If anyone might be happy, it’s Yahoo shareholders(short term) since they got a pretty big boost this morning $9/share. No need to bleed purple anymore.
YahooSoft Product Strategy (do they even have one?)
This is obviously an Ad Network consolidation buyout which would put Microsoft’s ad revenue well beyond $9.8 billion.
Also, the Zimbra platform is an excellent quick-start for MS independence from desktop app…..unless they kill it due to politics.
What’s hard to predict, is what will happen with all the properties Yahoo owns that compete directly with MS’s Live product offering. What will go and what will stay with this new unification strategy. Hopefully they will keep the companies completely independent as a MS Business Unit and only work to make their products cooperate easily.
In the end the real winer will be OpenID….lol
(Via WSJ.com.)
Post a Comment