Does Microsoft take over Yahoo?

Dui gave an example in the class that two big companies such as Microsoft and Yahoo could do alliance. I know, this news was quite hot in 2007 that Microsoft wanted to buy Yahoo that time in order to expand the market. That time Yahoo shares ended the day at $30.98, up about 10 percent and Microsoft shares finished at $30.56, down 1.3 percent. Actually, both companies had done partnership. Yahoo got supply ads that appear next to search results on Microsoft’s site. But, then the accord ended when Microsoft had AdCenter program.

The interesting question is why Microsoft want to take over Yahoo? I think the answer is just because Microsoft want to compete with Google. As we know that Google is the largest and best search engine in the world, which plans to reach a $3.1 billion purchase of online advertising company DoubleClick Inc. Actually, both Microsoft and Yahoo were also interesting in buying DoubleClick. But, Google finally won a search advertising deal and agreed to pay $1 billion for a 5 percent stake in AOL.

So, both big companies want to merge just because they need to compete with other big companies in the world in order to reach competitive advantage in market. But, until now the merger between two companies is still rumored and it has not happened yet. Perhaps, it can be true next time. Let’s see and wait..