Tech stock day traders rejoice – the web 2.0 bubble is getting enormous, and everyone with a forex software program and a home computer is trying to get in on this deal. Microsoft is serious about buying Yahoo to compete with the mighty Google. Many news junkets with Bloomberg TV, Techmeme, Mashable, & Techcrunch puts the deal at$50 billion. If Yahoo is swallowed up by the Beast of Redmond it will be the largest tech acquisition in history.
Reaction is mixed, but this seems to be Microsoft’s reaction after getting humiliated in the failed Doubleclick bid. Hear strategic benefits of Yahoo capitulating to Microsoft money on Bloomberg video.
Microsoft really has no other option to battle Google than by the purchase of Yahoo, but even this massive deal would not guarantee the success of MSN.
I hope this deal does not happen, but it probably will eventually. I like many parts of Yahoo search such as their excellent AJAX tools, Flickr and Yahoo Answers. Under the ownership of Microsoft these cool free tools will likely disappear or be seriously neglected.
Update 1:20pm PST: The WSJ says the deal isn’t happening. and it was just a well placed piece of linkbait by the NY Post. Interesting twist as Rupert Murdoch, the owner of the Post recently made a 5 billion offer on the Dow Jones. Murdoch wants to remind you all he is the most powerful man in publishing, and won’t be intimidated by the likes of Microsoft.