The Pro’s & Con’s of a Microsoft-Yahoo Merger!
If this is merger between Yahoo and Microsoft is becoming redundant, my apologies. However, I believe that Yahoo! turned down Microsoft’s offer just to raise the bidding ante. As if $44,000,000,000 wasn’t enough, all of us in the blog-o-sphere have suffered 44 billion headaches wondering how this is going to affect us, our marketing campaigns, and our revenue models. Specifically for myself, this impacts both my interest in this blog(revenue) and my financial tradings(my mutual fund).
Pro’s of the Merger
Google controls just about everything on the internet, you agree? You write a bad post and they take away John Chow’s page rank. Their bids for ads on their sponsored search are outrageous, but that’s business. Yahoo has become the small guy. However larger than Microsoft, Yahoo is decreasing it’s market share of internet searches every day. Now understand that I think like Larry Kudlow that free market capitalism is the best path to prosperity, however Google seems to be abusing some things from what I have seen on others blogs. I’ve always liked Yahoo. They have lower requirements for minimum bid amounts for their search marketing program with the same quality of traffic as Google does.
With Microsoft’s pending acquisition of Yahoo, it only proves to challenge Google which I believe is good for us who want to see some competition between the two.
The Con’s of the Merger
Google’s financial market cap hovers around $190-200 Billion, compared to Yahoo’s $41. However, Microsoft is huge with an astounding market cap of roughly $260 billion. In defense of poor ole’ Google, having competition with a company worth $300 billion isn’t something I’d cherish. Seriously, does a company like Microsoft really have to have so much pride to not lose this battle with Google that they are spending $44 billion out of pride? Since when does Microsoft really care about search monitization? Theres only one company larger than $300 billion that I know of, Exxon, and they control gas prices at tens of thousands of gas stations. Heck, Google might even lower their costs on adsense to compete with Microo!- Get it…Microsoft+Yahoo=Microo? Nevermind. Also, the small guys who provide some cheap CPC’s as well as have great customer service will be virtually ignored. As I mentioned before, I am all for free market capitalism, but I would like some options to chose from when it comes to marketing this blog or any affiliate program I wish.
The Conclusion
Either way, this merger really has opened some eyes as to potential takeover targets such as AdToll, Adbrite, and Bidvertiser. They need to watch out. You’d think Microsoft or Google would’ve gone for one a buyout of one of those mentioned above to quiet all of the Anti-Trust issues. So, do I think a merger would be healthy? I think so, and I’d love to see a Yahoo Page Rank to compete with Googles. We can dream, can’t we?
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