Christ, this is going to har far reaching bloody consequences. The market up for grabs had potential to be the largest and most important market in the world in a few decades (whoever controls computer software, internet apps, and websites will have immense power).

Right now with 3 big players and countless small ones (that Google and MS are gobbling up daily) things are okay. Once MS buys Yahoo there is no longer a 3 way standstill, there will be be two direct giants both fighting for more market share of their own key markets, of their competitors key markets, and of more and more unexplored markets. Google entering cell phone service is just the beginning. I'm willing to bet my DS that in 15 years Google and MS will have their hands in more markets then G.E.

You should never bet your DS.

 The problem with not selling is that MS is offering $31/share in this buyout.  Yahoo's stock is at $19/share.  It would be cheaper for MS to do a hostile takeover (which may be possible in 2 years after the DoJ's oversight is over) than it is to do the friendly takeover they are offering now.  That coupled with the fact that Yahoo recently announced the need to layoff 1000 employees means that Yahoo probably isn't confident in almost 50% growth over the next 2 years (the period in which they are secure from a hostile takeover).

 I personally think they will end up taking the offer.  1.5x market value is a *very* generous offer, and they may want to think about what is best for their stockholders -- which may not be retaining independent control of their companies.

i like Google...

evil M$
>_

 I agree with a lot of what you are saying, but I have a few differences of opinion.  However, I disagree that there is currently a 3-way standstill.  Currently, there is Google with 65-80% of the market, depending on whose statistics you use, and MS and Yahoo combining a generous estimated 35%, with most estimates around of less than 20% combined.  Really, there is just the one giant (Google), and a bunch of people that see the money they are raking in and want a piece for themselves. 

 Also, Google doesn't necessarily want to enter the cell phone service market.  They just want to ensure open access for their phones on any market.  Building a cellular infrastructure is expensive (ask Sprint's WiMax division), and Google would rather just piggyback on another company's network.  That's why they set aside the minimum bid for the C block of spectrum to hit the reserve price and ensure open access, which was hit yesterday.  Now Google has what they want out of the auction; they may use that money to get other blocks of the spectrum up to the reserve prices to ensure that all nationwide blocks have open access, or they might not... we can't know their bidding strategy due to federal law, but you can be sure they don't want to actually build the infrastructure.  It's not high enough margin compared to their normal endeavors  

Microsoft said, "Google's not a real company. It's a house of cards."

It's funny -- they consistently underestimate their competitors then they decide that all they can do is buy out the inferior competitor and hope they can maintain second place in that market.

When you know absolutely nothing about the topic under discussion it's better not to say anything at all.

Not only did your post not make any sense, it's also completely wrong.

=D

Note: This award may only be given out once a week by Dallinor.

Microsoft probably wants to buy yahoo so that they can push their sorry Windows Live search some more.

Monopoly? time to get educated. from fool.com:

December Worldwide Market Share

Google 62.4%

Yahoo! 12.8%

Baidu (Nasdaq: BIDU) 5.2%

Microsoft 2.9%

Everyone Else 16.7%



===========
and ssj12, didn't we cover this in detail like 6 months ago? gotta learn from these forums man.

 actually it can be considered a monopoly when you look at the fact they are trying to control the entire computer market from software to the internet and now starting in the electronics market.