Monday, May 08, 2006
Kaaching!! Microsoft to buy Yahoo
This would shake things up a bit in the tech world. It’s interesting to ponder and it would rock the search engine wars. A while back Microsoft tried to work a deal with AOL and got the door slammed in their face when AOL went with Google. So now a mega Yahoo/Microsoft merger is in the news.
A closer look…
Microsoft has $40 billion in cash. Yahoo wants over $80 billion. So Microsoft just gets a loan right? Of course I’m kidding.
Seriously, Microsoft takes a lot of pride in their technology. They are planning on spending billions to build a massive service infrastructure for both corporate and consumer customers. The cost of such a network with hundreds of thousands of servers scattered around the world is staggering. In fact only a few companies in the world could even begin to make this investment. Do you see where I’m going with this?
Microsoft is excited about the infrastructure costs because it limits the number of competitors. A couple of kids in a college dorm won’t be able to enter the new game. So do they want to buy Yahoo? I don’t think so.
Too see where Microsoft is pouring their energy check http://www.windowslive.com. Yep, that little URL is Bill Gates’ new baby.
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