Yahsoft or Microhoo

No, neither of the merger names really work, but despite this Microsoft and Yahoo are again looking at a merger. According to the New York Post Microsoft had made an offer for Yahoo a few months ago which had been rejected but it looks as if Microsoft have made yet another more vigorous offer this week. Yahoo’s share price reacted appropriately to the rumors, ending Friday at around $31 an increase of 10% for the day. Yahoo’s price tag was a mere $50 billion at the end of trading.

Ever since Google purchased DoubleClick Microsoft has been under pressure to increase it’s own web advertising presence. Purchasing Yahoo would achieve that goal, although it would not make much difference to Google’s search domination. We’re certain that it would take more than a merger of the competition to worry the guys at the plex.

A lot of the media reports stated that the merger would not happen due to the diversity in the culture of the staff. We’ve never noticed that being a problem before with any mergers we’ve been a part of. There’s always a bigger partner whose culture slowly infiltrates the smaller.

With this merger it’s just a question of how much Microsoft want this, will they stump up the cash? And if Bill opens up his wallet Yahoo may not get to play much part in the joint role.

Would a MS-Yahoo merger be a good thing, could it spell the end of Google’s domination? Let us know your thoughts.