Microsoft Bids $44.6 Billion for Yahoo!

Feb 1, 2008  •  Post A Comment

Software giant Microsoft made a $44.6 billion offer for Yahoo! in an effort to challenge search giant Google in the Internet advertising business. The acquisition would be the biggest ever in the technology business.
Both Yahoo and Microsoft have lagged Google in recent years in online ad dollars. Yahoo has seen eight straight quarters of declining profit.
The acquisition, if it goes through, would likely help both Microsoft and Yahoo compete more effectively in online ads, but would make little difference in the online video business.
Google and YouTube, which Google owns, far outpace the combined online video audiences of Microsoft and Yahoo.
Combined, Google Video and YouTube reached nearly 80 million unique visitors in December, according to Nielsen Online. That dwarfs the combined reach of the third- and fourth-biggest sites—MSN Video and Yahoo Video—with 16 million unique visitors combined.
Audience measurement firm comScore said that of the nearly 9.5 billion online videos viewed in November, Google and YouTube accounted for 3 billion.
However, both MSN Video and Yahoo Video have been successful in attracting brand advertisers to their online video offerings.
According to online audience measurement firm Hitwise, the combined market share of U.S. Internet visits for Microsoft and Yahoo Web properties was 15.6% of all Internet visits for the week ending Jan. 26, with Google at 7.7%.
However, for the first four weeks in January, Google accounted for 66% of all U.S. searches, with MSN and Yahoo earning a combined 28%.


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