Today competition in the world is getting stronger and faced opponents with everything. When two "mega-companies" go to war affecting the whole environment. That's what happened in recent days with Microsoft and Google who expressed their intentions to dominate the world of Internet and technology, a market that grows every day more and more influential in the lives of people.
On 1 February, the U.S. computer giant, Microsoft, offered U.S. $ 44,600 million by the Internet powerhouse Yahoo number two in the world of online advertising, which was one of the most big Internet World.
However, Yahoo rejected the offer as too low to. To all this, the proposal was accepted or not, has marked a turning point in the Internet world, where it has been perceived as a monopoly by one of these mega-companies, is just around the corner. YAHOO DEAL
Computing Microsoft offered U.S. $ 44,600 million by the powerful firm. For some years there was a possibility that the company he founded Bill Gates bought the founded by Jerry Yang and David Filo. Last May there were already talks and spoke of a possible bid, though at the time, the two companies were quick to point out that what you were looking for synergies to fight the enemy all: Google.
Microsoft said it had made a proposal to the board of Yahoo! to acquire common stock package of $ 31 per share, representing a total equity value of approximately 44,600 million dollars.
Yahoo! reacted immediately adding that its board "evaluate the proposal carefully and promptly in the context of the strategic plans of Yahoo and would make the best decisions to maximize long-term value for shareholders."
The offer represents 62 percent premium above the closing price of the shares of Yahoo!
Microsoft's offer, if accepted Yahoo! would have been a merger of large technology companies, raise important questions regarding competitive landscape of the Internet.
YAHOO'S DILEMMA
During a meeting, the former chief executive of Yahoo, Terry Semel, met with the founders of Google at the beginning of this decade and made the mistake of underestimating the search. Soon after, Semel tried by all means gain ground on Google, buying technology and advertising companies, but his reaction was delayed.
Yahoo has been in serious trouble, suffered a drop in its profits last year and warned that 2008 would be equally difficult, as it faces a reorganization to increase its main source of revenue: advertising sales.
Currently, its competitor Google, pocketed more than 32 percent of its revenue from Internet advertising worldwide, against less than 20 percent for Yahoo, in an area in which just two years the two went hand in hand .
Yahoo, despite attempts, acquisitions and growth strategy to compete with Google, has not achieved the desired results. Also, the management team seems to have no ideas to bring the Company's current impasse.
Since the explosion of the boom. Com, Yahoo has been seeking its niche in the market. Terry Semel's arrival raised the company's transformation into a media specialized in aspects such as movies or music. Although the results in terms of audience has been positive, has not achieved the expected profitability.
INTERNET: A COMPETITIVE WORLD
The future of Internet search tools on the outcome of this maneuver. If the supply of Microsoft prospered, had been the agreement of the moment, comparable to the merger between Time Warner and AOL in full bubble.
Behind all this lies the impressive change that affects the advertising industry. Laying the foundations for a new industry as technology streamlines the way they are presented, value and distribute the ads. While Google appears to be in the best position to adapt to this trend, a competitor who got a foothold in the second not be far behind.
advertising is likely to end up becoming the essence of the Internet, but major changes in the behavior of millions of consumers, caused by a new wave of technology, mean that this represents a challenge even for companies from the beginning Internet have evolved.
To begin, even while technology bubble, the Internet advertising revenues did not exceed 8,000 million U.S. dollars annually. The benefits in the country amounted to 22,000 million dollars last year.
LEFT BEHIND MICROSOFT
Only one company has managed to grow at a frantic pace, going to dominate the sector, and Google. In mid 2007, Google's advertising revenue grew so large that surpassed those of Yahoo, AOL and Microsoft combined.
advertising funds Now that most of the activities of Internet users, Microsoft has seen the need to be present in a sector that will handle its ability to generate future income.
that advertisers now spend much of their budgets to the Internet, Microsoft estimates that within two years, the global online advertising could generate revenues of 80,000 million dollars. Again
arrived late because Google dominates 70 percent of the online search market, the Grand Canal in Internet advertising.
addition, the company founded by Bill Gates has been trying, without success yet, transfer their success to mobile phones with Windows Mobile. In this business, has found another giant, Nokia, which has beaten him. Symbian, the Finnish manufacturer's proprietary system, operates in more than 60 percent of mobile phones used around the world.
These established competitors, the purchase of Yahoo, if he had done, just was not enough for the software giant.
REJECTS OFFER
The board rejected finder hostile takeover bid from software giant for U.S. $ 44,600 million, as too low.
The governing body of Yahoo! estimated that Microsoft's offer "greatly undervalues" the company, and does not take into account the risks they must face Yahoo! if you reach an agreement that, ultimately, could be blocked by government regulations.
Microsoft was willing to pay $ 31 per share which represented a 62 percent increase over the price the securities Internet search engine had a few days before the offering.
The board of the company Yahoo! believes that Microsoft is taking advantage of the internal problems of the company, which recently announced a proposed downsizing of thousand employees, as part of an effort to revitalize the company.
also added that the offer is not the most appropriate taking into account "the recent investments in advertising platforms and future growth prospects. "
However, the company remains open to further negotiations. Yahoo! Microsoft will test to see if the software giant is willing to pay more for the company. But it is also possible that Microsoft will launch a hostile takeover or simply withdraw.
Yahoo is in the midst of a restructuring process in its different business areas, and even in late January announced its biggest job cuts in its history. The website did not happen at their best after presenting results of 2007 with a 12 percent profit lower than the previous year.
Offer Microsoft's had come as a balm for trading increasingly weakened by a boost of nearly 50 percent. However, the portal has indicated that the legal and financial advisers polled by the company about the offer, "have concluded unanimously that does not match the best interests of Yahoo and our shareholders."
This decision could encourage Microsoft to improve its offer. Several Wall Street analysts pointed to the company that Gates could raise the amount offered by the website. In addition, Citi said that the five scenarios that provides for this "novel" the increase in supply was more likely. YAHOO SEARCH
other "friends"
Yahoo is trying to reopen talks on a possible merger with rival AOL, to fend off Microsoft's hostile bid.
Increasingly strong rumors of an alliance between Yahoo with Google, its "enemy" par excellence, to combat Microsoft's offer.
Since Microsoft showed their cards, the portal has been in the middle of a war between the company of Gates and Google. The Internet search engine received the interest of his competitor for Yahoo as a direct attack, so he decided to make a move and disrupt supply. Google
Seattle giant accused of wanting to extend their monopoly of the "software" to the field of Internet. Microsoft's proposed merger with Yahoo suppliers join one and two e-mail, instant messaging and Web portals, which act as starting points for hundreds of millions of users seeking information on the Internet.
According to the newspaper "The Wall Street Journal, Google CEO, Eric Schmidt, who has been in contact with the CEO of Yahoo, Jerry Yang, to offer their support against the U.S. software giant's bid. These same sources indicate that this approach occurred last week when Yahoo! still appreciated its potential.
other hand, Google is unable to launch an offer to buy Google and antitrust regulators would not allow it because of its large presence in search and advertising markets on-line. So yes, the company could help other companies to launch a bid for Yahoo or provide support for the popular search engine to maintain its independence so as not to see it in the hands of the enemy.
Source: lostiempos.com 
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