In a move that can only be deemed gargantuan, Microsoft has announced that it has made an offer to buy Yahoo for $44.6 billion.
This move could ultimately change the internet, as we know it. Microsoft is the biggest software giant in the world, and Yahoo garners more traffic than any other site on the world wide web. The two combined could revolutionize the internet much faster than anyone would have expected it to have been done in its present state.
Just think of the capabilities that combining a software powerhouse with all that traffic could create. From integrating speech recognition into Internet surfing, and creating online applications that range from enhanced gaming techniques to 1-step video chat, the world could be Microsoft/Yahoo’s oyster.
These two companies are leaders in the field of computer research and development, and it is never a bad idea to combine mega centers research. They will bring enhanced improvement to Internet infrastructure, servers, operating efficiencies.
But let’s be real. This is merger is all about one thing: search!
This move immediately changes the way the search engine industry is comprised. Google has long been the leader in search with about 66% of search traffic going through them. That type of dominance amongst a diverse and diluted industry, full of companies with either too little financial resources or not enough of vested background in search to compete with Google, has made the search engine industry Google’s playhouse. Google has symbolically monopolized the market. Some people don’t even refer to internet searching with that term anymore, they just simply say “Google it.”
However, the combination of Yahoo and Microsoft would immediately make them a major player in the search engine industry. This would give them an estimated 30% of search engine traffic. On top of that, there is no telling what a software innovator like Microsoft could do to turn Yahoo’s prolific traffic into more and more search engine users. The simplest of technology by Microsoft could make it so that Yahoo users are using their search engines in ways that effortless and innate to computer usage.
The bid of $44.6 billion is being reviewed by Yahoo CEO Jerry Yang and the company’s board of directors; although, it is expected by most pundits that this is an opportunity Yahoo can not afford to miss. Yahoo’s stock went up around an estimated 50% once news of the bid was announced. That came after Yahoo was trading for less than $20 for the first time in several years.