Yahsoft or Microhoo? We
Report, You Decide!
By Alan Zeichick

Microsoft’s

$44.6 billion

hostile

takeover bid

for Yahoo is

all about the money. Specifically,

advertising revenue.

The move shouldn’t have been

a surprise. All the stars were in

alignment: Microsoft is scared

silly about Google’s increasing

dominance of online search and

online advertising. Yahoo contin-

ues to flounder, not knowing

exactly how to leverage its large

user base and tremendous vol-

ume of content. Meanwhile,

Microsoft has been left out in the

cold, as its online properties fail

to generate traction with Web

surfers or cash for the coffers.

“We have great respect for

Yahoo!, and together we can

offer an increasingly exciting set

of solutions for consumers, pub-

lishers, and advertisers while

becoming better positioned to

by establishing a compelling number two competitor for Internet search and online advertising. The alternative scenarios only lead to less competition on the Internet,” wrote Brad Smith, general counsel for Microsoft. The Redmond, Washington-based giant cites Google’s 75 percent share of paid search revenues as justification for the move, implying that the move would be good for consumers.

“Microsoft is committed to openness, innovation, and the protection of privacy on the Internet. We believe that the combination of Microsoft and Yahoo! will advance these goals,” Smith added.

This story was unfolding on deadline for this issue of net Worker; it’s too soon for us to report how it plays out, and whether The Empire (Google) will strike back. Yahoo, meanwhile, has said only that it’s evaluating the unsolicited proposal. It’s interesting that the bid