Friday, 1 February 2008
The Microsoft Yahoo story has been around for many months, so when I saw it pop up again today, I wondered if it was a re-hash of the last loop and therefore not really news. Then I heard Steve Ballmer on the radio talking about it, so I assume its a real bid again. I recollect the going rate was about $50 billion when the last speculation occurred, so now the 10% reduction is interesting but not exactly a snip.
Although, I suppose if Google is worth around $150 billion (I haven't checked these numbers) and Microsoft itself is probably worth $300 billion, then Yahoo for $44bn may be quite a quick way for Microsoft to catch up on the advertising and search engine revenue model.
Its interesting that Microsoft has generally stayed in the technology space up until now and let others drive the other business models. This situation would give Microsoft a different revenue stream derived from advertising and search manipulation, as well as the more conventional technological aspect to be able to support a cloud based application interface.
Maybe some of the revenue models from Google and Apple start to offer another re-invention strategy for Microsoft?