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The Search Engine World is Heating Up

Thursday, April 10, 2008

Call us big geeks but we have been enjoying the public but rather courteous skirmish between Microsoft and Yahoo! If you aren’t aware of what is going on I’ll give you a run down on things so far;

January 31 2008

Microsoft bids 44.6 billion($31/share) in a cash and stock bid to acquire Yahoo! Yahoo! calls it "’unsolicited’ but did not reject it."

March 17 2008

Google CEO Eric Schmidt in a ‘going through the motions’ thing ‘calls the bid ‘bad for the internet.’ – duh

March 18 2008

Yahoo! states it’s operating cash flow over the next three years will double from $1.9 billion to $3.7. They also state that Yahoo! will generate $8.8 billion in revenue in 2010. This plan was presented to the Yahoo! board in December a full month and half before Microsoft’s take over bid.

Cut to Early April 2008

Microsoft CEO Steve Balmer sends Yahoo! a letter telling them to take the now $41 billion or expect a hostile take over. Now things are getting a little hotter.

April 9 2008

  1. Yahoo! stuns some by announcing that it will test run Google’s AdSense in it’s search queries. This will help Yahoo! make money with out really doing anything.
  2. Yahoo! close to a deal with Time Warner’s AOL
  3. Microsoft is also in talks with News Corp in combining efforts to take over Yahoo!

So What’s Next?

Will Microsoft win the battle or will Google find a way to buy most of Yahoo! before that happens? One thing we know for sure if Microsoft and News Corp(they own the horrible social network known as MySpace) get there hands on Yahoo! and it’s services like Flickr we may just have to give up the internet entirely. Just kidding but Mr Balmer and Mr Murdoch if you do get your wishes please leave all the cool things about Yahoo! alone.

Yahoo Stock vs Microsoft Stock

This is a snap shot of Yahoo stock vs Microsoft stock over the last 3 months.

image

 

Jason McElweenie

For more information please contact the Search Engine Marketing Team at Schipul – sem@schipul.com


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Written by Jason McElweenie. For more information please contact the Search Engine Marketing Team at Schipul –


3 Responses to “The Search Engine World is Heating Up”

  1. What I see in your stock chart is that the market believes that Yahoo! is considerably more valuable as a PART of someone else’s company than it is as a lone entity trying to do business oppositive Google. If you do that same 3-month comparison between Yahoo and Google stock performance, you’ll see that Google’s value has DECREASED 30% in that same period. So the wisdome of crowds is that Yahoo will win and Google will lose if a deal with Microsoft or another company happens. I don’t understand how it benefits Yahoo, its customers or the user community to continue limping along in a losing effort to keep up with the market leader.

  2. Dan
    You bring up a good point. I did a post on march 19th http://www.thesemblog.com/2008/03/keeping-up-with.html showing Google, Yahoo! and Microsoft and their stock volume and Google has been sliding since the beginning of the year hitting $413/share on March 10 2008. A number that they haven’t been at since June of 2006.
    http://finance.yahoo.com/echarts?s=GOOG#chart12:symbol=goog;range=20060417,20060821;charttype=line;crosshair=on;ohlcvalues=0;logscale=on
    Pay Per Click numbers are down as well. http://www.alleyinsider.com/2008/3/google_february_paid_clicks_lousy_again_ and it looks like the diving economy coupled with Microsoft’s inevitable take over of Yahoo! spells bad news for them.
    Google may just have to rethink their motto of ‘Don’t Be Evil’

  3. I'm loving the break down. Great post. Now I'm all caught up.

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