anshul - 9:04 pm on Feb 8, 2008 (gmt 0)
Most people think Yahoo will end up accepting the offer, but I think not.
I think it is most likely Y! would accept this offer. Corrosion of Y! started sometime back and they were never serious or innovative about Y! search or mail. Outcome is nothing surprising. Y! perception was wrong that it could be #1 destination on Web and #1 trafficked Web sites. However, it showed up when their advertising revenue declined vastly. Y! search is not only thing. Y! mail has not been very much good. Their frustration shows up when they purchased Zimbra. It is best if Microsoft handles Y!, which is falling continuously. There is no other way for Y! Its corporate inefficiency and lack of vision leads to technical inefficiency. It is a mismanagement at all levels.
IMO, combining Yahoo's great brand with Microsoft's distribution power via IE will create a strong #2 Google competitor (which we all want!)
IMHO, MSFT is most interested in mail. Plus, huge advertising infrastructure is useful to them. I don't think, Microsoft is impressed for Y! search. Live search is coming up good. One important reason is MSFT purchasing Y! marks their competency (in fact domination) over open source; so this way they are excited to purchase it. And $44.6 billion is a very good, daring price for Y! mail, IM technology, its advertising platform, for its open source and brand ;- ) Leave search, Google is too much big in that and it shouldn't worry for MSFT+Y! search; it has better to look about Wikipedia.
Lastly, there's the fact that search, for all its importance, is only 3-4% of worldwide advertising and 40-45% of online advertising.
Yes, I think MSFT don't care about Y! search technology. Their interests are in its other things.