Cope With Tech - by Eric John Emberda

It was to be expected (in my opinion). The Wallstreet Journal reports that Yahoo's board plans to reject Microsoft's $44.6 billion bid by sending a letter tomorrow stating their position. Although I don't agree with them that the proposal undervalues Yahoo that much. I do agree that Microsoft has taken advantage of Yahoo's recent weakness in share price. An interesting scenario they picked up though: "Search Advertising Partnership with Google Inc." Hmmm... wouldn't that be quite a monopoly?

In response to Microsoft's $44.6 B bid for Yahoo, Google through its senior vice president and its chief legal officer Mr. David Drummond said: "Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies -- and then leverage its dominance into new, adjacent markets." http://googleblog.blogspot.com . Microsoft has been known to face Antitrust charges in the Software industry. Albeit facing these issues, Microsoft continues to dominate the Software industry. Now another antitrust issue is being raised--the Internet. Will the Internet community allow this to happen? While this union (in my opinion) can definitely put up a fight with regards to Internet advertising making prices more affordable, my question would then be, how about the open source community? What effects will t...

Wow. This is a very interesting news. Just recently, Microsoft, a software giant made an offer to Yahoo to acquire their outstanding stocks for $31 per share. This would be equivalent to $44.6 billion total equity. Yahoo's closing price as of January 31, 2008 was $19.18. This makes Microsoft's offer equivalent to a 62% premium. The question is, would Yahoo's board of directors consider the offer? If this union proceeds, will it have a great effect on Google's economic performance? Google right now is on top of Search Engines and on-line advertisement. Will the Microsoft-Yahoo tandem end this dominance?