At Web 2.0 summit in San Francisco, California, Yahoo’s chief executive Jerry Yang said “To this day the best thing for Microsoft to do is buy Yahoo….”. This statement of Yahoo’s top leading executive once again shook the Internet and IT Industry.
According to Yang, Yahoo wanted more negotiation with Microsoft. It appears to me that Yahoo! had started suffering after the rejection of the deal by Microsoft. This year on 31st Janurary Microsoft offered a total amount of $44.6 billion to Yahoo! half in cash and half in stock-deal, but Yahoo! didn’t took it seriously. Later Microsoft raised their offer and came upto $47.5 billion in total raising from $31 per share to $33 per share. Again Yahoo! didn’t show them positive response.
On May 3rd, Microsoft stepped back and said that they are no longer interested in buying Yahoo! The main reason of Microsoft to buy Yahoo! was to compete the Internet Search Engine market against Google. Since May Yahoo! share price has dropped from $28.67 to $13.92.
Now what I see is Yahoo! is having a downfall and Microsoft’s earning raised by number in this quater due to the Microsoft Vista sale. So in short, Yahoo! is going down and Microsoft is rising up! Microsoft must put his hand to buy Yahoo! again. This time Microsoft can even offer Yahoo! $20 per share and that would be huge enough for Yahoo! Obviously Microsoft will not offer the same deal again to Yahoo! that was $33 per share because Yahoo’s current market statistics show an almost 50% downfall.
On the other hand another head shaming news for Yahoo! is that Google pulled off their Ads from Yahoo Search Engine! This wednesday Google ended up the deal with Yahoo! for the Google Ads which were shown in Yahoo Search Engine.