Saturday, February 2, 2008

Microsoft Offers To Buy Yahoo

In new stock tech news, Microsoft has offered to buy struggling search engine Yahoo! for $44.68 billion. Microsoft wants to boost its position in the powerful and financially rewarding search business.

Just last week, Jason Miller of WebProNews Insider Report wrote that Yahoo! was working to uncover Google's method of page ranking.

"search experts at Yahoo seem to think it's not complex enough. Based on patent filings, Yahoo is dabbling in ranking algorithms that incorporate more user behavior data in advance of the company's next run at toppling Google's haloed relevance. "

Definitely what Yahoo has not grasped nor Microsoft is the search habits of real people. People are not just searching terms anymore. We are looking for pictures, jpegs, music, music videos, the parameters for search has changed, and Yahoo nor I believe Microsoft have changed with their audiences. They spend lots of time trying to figure out Google's algorithm, when really they should just look at what people are looking for and how they look for information. They hemmed and hawed, so the cheese moved.

The unsolicited offer will allow Yahoo shareholders to choose from cash or stock when the buyout occurs.

This offer should not come to any surprise, as Microsoft and Yahoo both explored ways to work together in 2006 and 2007. At that time Yahoo rejected the idea of a takeover.