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Tuesday, May 13, 2008

Microsoft cancels Yahoo! Acquisition deal - a joy for Yahoo!

From the last three months, we have been hearing about Microsoft's eye on Yahoo!. We also heard about different imaginations that people were giving on the change in Yahoo!'s services when It will be under Microsoft. Many people were even talking about the name of the company, whether it will be Microhoo or Yacrosoft. But all these adventures came to an end when Microsoft's CEO, Steve Ballmar, clarified that no more on Yahoo! deals, and he is taking of the deals.

Microsoft's offer to Yahoo! was $31 per share in a combination of stock and cash. That was a premium of more than 60% on Yahoo!'s present stock price. Yahoo!, however, predicted this price to be too low for them. As you can get it was a statement of negotiation from Yahoo!. But it was always very clear that Jerry Yang, CEO of Yahoo!, didn't liked his Company to fall into the hands of that software giant. Jerry Yang was very much willing to do almost anything to prevent that - even to take upon a deal with their market rival Google.

Rumors say that Microsoft and Yahoo! were in talks for last one year while Microsoft realized that Microsoft's search engine was losing the total market share to Google. Microsoft getting terrified with Google's lead in the market, started to think on new things. Though researches say that combination of both Microsoft and Yahoo!, the 3rd and 2nd most popular search engines in the world, will still be far away from Google. Hitwise research says that Google got more than 67 percent of US searches this year, whereas Microsoft and Yahoo! together didn't even got up to 30%.
This maybe the reason why the acquisition had been put down by Microsoft. But still what goes on Microsoft's mind is a matter to see next.

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