Microsoft offers $44.6B for Yahoo

[kgun]

Read more ...

[cw1865]

Block this, this is not good.....write to the FTC

antitrust@ftc.gov

- Europeans, get the EU anti-trust watchdogs on it, they're even tougher....

[kgun]

What about this?

Economists don't like monopolies. That should not be mixed with monopolistic power, even if there is similarities. The consumer, (read online shopper) and advertiser suffer.

[ushuiah]

I also read this kind of post from other forum but it's true that Microsoft will offer billions of dollars to Yahoo. Sounds a new start of good SE competition.

[datetopia]

Isn't google a monopoly on web search? Most of the worldwide searches are done trough it.
A strong competitor for google would balance the search market.

PS: Here is it on Reuters: Microsoft bids $44.6 billion to buy Yahoo | U.S. | Reuters

[kgun]

Originally Posted by datetopia

Isn't google a monopoly on web search?

Far from in my opinion and less than Coca Cola is on the market for refreshment. If Microsoft buys Yahoo, it will get an even stronger postion on the desktop and online software market.

May be you have to be an economist to knwo the difference between:

1. Monopol.
2. Duopol.
3. Oligopol.
4. Monopolistic competition.
5. Market / price leader.
6. Etc.

[netndx]

I am beginning to welcome anything to combat Google at this point.

Go YaSoft! or is it MicroHoo!

[netndx]

Originally Posted by kgun

If Microsoft buys Yahoo, it will get an even stronger postion on the desktop and online software market.
[/LIST]

What does yahoo have on the desktop?

[kgun]

Originally Posted by netndx

What does yahoo have on the desktop?

Yahoo widgets, even if that is marginally important and it was not my main point.

[netndx]

Originally Posted by kgun

Yahoo widgets, even if that is marginally important and it was not my main point.

I know it wasn't, but I was making the point that dominating the desktop because of this merger was a little bit of a reach. They already do that albeit eroding.

However in my view monopolies don't last long anymore. We are hypersensitive to them for one and believe me the litigation will begin immediatly whether based in fact or not. Second there is nothing we like more in this country than to take down a King

fuzzy oligopolies and duopolies (sp?) are a another story

[kgun]

Did you read what I wrote about monopolies above?

Neither Microsoft, nor Google is a monopolist, not even an oligopol. Have you looked at GOOG stock price?

May be a natural fluctuation in a market economy or a more serious problem. I am not an investor.

I will not tell you my opinion.

This was not an advice to buy, hold or sell GOOG, since I do not know enough.

[netndx]

Originally Posted by kgun

Did you read what I wrote about monopolies above?

Neither Microsoft, nor Google is a monopolist, not even an oligopol. Have you looked at GOOG stock price?

May be a natural fluctuation or a more serious problem. I am not an investor.

I did read it. I thought you said that Google wasn't a monopoly and were implying by your list that this deal would put MS in a position to be one of the opolies. Sorry if I misunderstood.

google's stock price as I understand it dropped yesterday on an earnings miss and annoying a few analysts with a significant drop in advertising earnings. And then started dropping on news of this possible deal this morning.

Arrington over at TechCrunch has a video of him on Fox Business Channel the other day. A graphic popped up asking the question "Has Google Jumped the Shark". Seems to me that the Street has been thinking about Google even before yesterday.

as I write this I laugh because it seems like every time we start talking as webmasters the subject quickly turns to google. I am as guilty as anybody.

[kgun]

Originally Posted by netndx

Seems to me that the Street has been thinking about Google even before yesterday.

I think I personally saw that story at MarketWatch the day it was published more than a week ago

Google is my preferred search engine.

[netndx]

Originally Posted by kgun

Google is my preferred search engine.

yep mine too. primarily via their toolbar. They frustrate me as a webmaster sometimes with a relatively clunky interface in adsense among other things.

the thing about the stock price is that stock prices don't always equate to what is really going on. Who says 700+$ was a real price anyway That correction could have merely been a series of rich guys moving there money around

now jumping the shark or overreaching is a question that is worthy of thinking about...sometime. We are becoming tangental to the original topic at this point

[kgun]

Originally Posted by netndx

We are becoming tangental to the original topic at this point

Agree. Back to topic. It is late evening here. Have a nice weekend.

[netndx]

Originally Posted by kgun

Agree. Back to topic. It is late evening here. Have a nice weekend.

yep. Thanks. you too.

[WDC]

SEO time - Search Engine optimization & web design company blog

I read it first from WebProNews | eBusiness News, Search News, and Business Videos newsletter.

[WDC]

One thing I'd like to share with you all I like and always support anything that challenges google.

[erikko]

ive read about this a week ago in other forum and for me its not a bad idea at all because this merger will enhance the services of SE but one of the concerns is what will be its name if ever

[cw1865]

Originally Posted by kgun

Did you read what I wrote about monopolies above?

Neither Microsoft, nor Google is a monopolist, not even an oligopol. Have you looked at GOOG stock price?

May be a natural fluctuation in a market economy or a more serious problem. I am not an investor.

I will not tell you my opinion.

This was not an advice to buy, hold or sell GOOG, since I do not know enough.

Really, I would say that google, yahoo and msn with respect to the search engine market probably constitutes an oligarchy. I forget what the standard was, but wasn't it if the top three have a 90% market share, its an oligopoly? I forget now, I will have to look that up.

Per wikipedia "As a quantitative description of oligopoly, the four-firm concentration ratio is often utilized. This measure expresses the market share of the four largest firms in an industry as a percentage. Using this measure, an oligopoly is defined as a market in which the four-firm concentration ratio is above 40%"

[cw1865]

Originally Posted by kgun

Did you read what I wrote about monopolies above?

Neither Microsoft, nor Google is a monopolist, not even an oligopol. Have you looked at GOOG stock price?

May be a natural fluctuation in a market economy or a more serious problem. I am not an investor.

I will not tell you my opinion.

This was not an advice to buy, hold or sell GOOG, since I do not know enough.

C'mon kgun, go for it.....! hehe

Google is extremely overvalued. At the end of the day google's revenues are linked to advertising. Last year in the US consumers spent a little over $100 billion.

Now prior to the e-commerce age, fortune 500 companies spent, on average .03 of gross revenues on advertising (+/-). That means google's revenues are going to be linked to online spending. Today, February 5th, 2008, Google's market cap was $158 billion. In 2006, google's revenue was $10.6 billion (in 2007 $11.8 billion), so AT MOST google is getting 11-12% of all online spending. That means for google to GROSS $158 billion, online spending needs to grow to $1.436 trillion. (THIS IS VERY SIMPLE MATH, I KNOW, but its a blog). Even assuming 25% growth per year, it will take 10 years for spending to reach the required level to justify google's market cap to equate its gross revenue...this is of course assuming that google's revenue is perfectly correlated to US online spending (which it isn't) and assuming that google will maintain its current market share (which could grow or decrease)

"U.S. consumers spent more than $33 billion online last quarter, not counting airline tickets and other travel-related spending.
Reston-based comScore Networks estimates fourth-quarter non-travel online spending reached $33.1 billion. A report from the Commerce Department estimates fourth-quarter online spending at $33.9 billion.
And that online spending, although still a fraction of what Americans spend at bricks-and-mortar retailers, is expected to continue growing significantly.
"With consumers' online spending now exceeding $100 billion annually and still growing at a rate in excess of 25 percent per year, it is clear that e-commerce has come of age," says comScore Chairman Gian Fulgoni."

[dartman]

Don't overlook the fact that people also search for local shopping information. Advertising with a search engine is
flexible, can reduce ad costs and provide up to date information for shoppers. I suspect a significant impact on
Yellow Pages ads in the future. Apparently G is doing something right with 60% of online search traffic. Personally
I'd be glad to see yahoo go away.

[kgun]

Originally Posted by cw1865

Really, I would say that google, yahoo and msn with respect to the search engine market probably constitutes an oligarchy. I forget what the standard was, but wasn't it if the top three have a 90% market share, its an oligopoly? I forget now, I will have to look that up.

Per wikipedia "As a quantitative description of oligopoly, the four-firm concentration ratio is often utilized. This measure expresses the market share of the four largest firms in an industry as a percentage. Using this measure, an oligopoly is defined as a market in which the four-firm concentration ratio is above 40%"

There may be a formal and an informal definition. In my view, if the companies exercises free comptition in an industry with many atomistic units (as in this market) it may be an unformal, but not a forma oligopol according to that definition. The effects of a formal and an informal oligopol may of course be similar. There should be strong supervision of the indurstry and as far as I know coporate America, nobody has done that better than them to this date.

[kgun]

Originally Posted by cw1865

That means for google to GROSS $158 billion, online spending needs to grow to $1.436 trillion. (THIS IS VERY SIMPLE MATH, I KNOW, but its a blog). Even assuming 25% growth per year, it will take 10 years for spending to reach the required level to justify google's market cap to equate its gross revenue...this is of course assuming that google's revenue is perfectly correlated to US online spending (which it isn't) and assuming that google will maintain its current market share (which could grow or decrease)

Here is my own estimate:

"Personal view: In the end hard work will win, and it takes resources to update and survey your affiliate accounts.

Private estimate: 2015
Sale online (USD) 30 Trillion - 50 Trillion.
Sale through affiliates 30 - 50 %"

Google AdWords and AdSense are part of that equation.

[kushty]

Apparently Yahoo have rejected Microsoft's offer and are now talking to AOL. They are saying that they won't consider less than $40 a share. A bit more than their initial offer of $31. IMHO I would welcome something that could ease the domination of Google.

[kgun]

Originally Posted by kushty

Apparently Yahoo have rejected Microsoft's offer and are now talking to AOL. They are saying that they won't consider less than $40 a share. A bit more than their initial offer of $31. IMHO I would welcome something that could ease the domination of Google.

Yes, that means that Microsoft has to increase the bid with USD 12 billion as far as I see.

This bid has had to temporary (??) effects.

1. Lower the stock price of Microsoft.
2. Increase the stock price of Yahoo.

Time for Google to buy some MS shares? (That was a joke).

[Tubby]

Kgun presented us with a list . .

Monopol.
Duopol.
Oligopol.
Monopolistic competition.
Market / price leader.
Etc.

I like the word 'googopoly' It could mean

'everybody uses us. . even if they do not have to'

or
'we keep bumping into us even when we you are avoiding us'

or
' we do what we like - we aint forcing you '

[kgun]

May be

Etc. is the most important category. There are written (parts) of books on that category, Etc.

[swcreations]

The search engines still seem to produce the most sales for my type of business. So as much as I dislike their new method of indexing, which has little method to their madness, it appears to be a necessary evil.

Stephanie A White
SWCreations Beaded Jewelry - Handcrafted Beaded Jewelry Designs and Handmade Beaded Gifts

[PAUL-B]

Something that'll erode the market position of Google should actually be welcomed. They've controlled the search engine sector for far too long...

[kgun]

Breaking news on Cnn.

Microsoft sends message to staff on possible merger with Yahoo and call it "MicroWho."

Remids me of Twingine that started as a april 1 joke: "Yahoo and Google merges" to:

YaGoohoo!gle