Bill Gates, Microsoft's acquisition last Yahoo is determined to win the war

Yahoo input Microsoft embrace it seems that the only thing sooner or later, because this is the last battle of Gates. However, Microsoft and Google can win the war, is the crux of the problem

July 2008, 53-year-old Bill Gates to retire. He left in the final moments before, Microsoft launched the biggest enemy offensive.

February 1, Microsoft announced will be 44.6 billion US dollars (31 US dollars a share) to buy Yahoo. On the previous day, the search giant Google has just released a disappointed investors in the fourth quarter of the 2007 financial report.

Almost all economists agree that Yahoo is only between Google and Microsoft over the future of the Internet dominance a pawn.

Two years ago this autumn, Gates visited the "New York Times." When asked whether Microsoft would like to deal with, like Netscape, Google, he jokes: "No, we will adopt other means." Clearly, the acquisition is Yahoo Gates think of ways.

Late war

Gates for the value of the Internet is not entirely hindsight. As early as 10 years ago, he wrote a world-renowned paper, "The Internet Tidal Wave," and opened from software giant Microsoft to Internet-based technology transition. However, Microsoft has always lag behind the competition.

In the 1990s, Netscape had developed the first browser, and of course a "network leader." At that time, Netscape 85% of the browser market share, while Microsoft's IE only 4% of the share. Both sides of the competition to the Netscape failed, but Gates also spent a lot of time and energy, and was dubbed the notorious monopolies.

Compared with Netscape, Google is the greater threat. Google founders have long known that, the search function is not a by-product of the Internet, but the strategic core of the network, Gates is obviously not aware of this. Now people have to develop the habit of this, both would like to know how high Mount Everest, or selling food in there, to Google search. More importantly, from this reliance on Google has been a incredible commercial success.

Google started from 2000 sales and keyword-related advertising. At that time, as the Internet bubble burst, many Internet companies have closed down, while Google earned in the high profits. In the past few years, Google's expansion at an alarming rate, the number of its employees reached 13,700 people.

In 2006, Google launched offensives acquisition, first acquired the largest video-sharing site YouTube, and announced the acquisition of the Internet's most powerful advertising service provider DoubleClick plans.

Confusing people is not only Microsoft's counterattack slow and the lack of determination. Although DoubleClick joined the battle, but Microsoft, he is only willing offer 2 billion US dollars, while Google came up with a generous 3.1 billion.

At the close of the acquisition, Gates openly admitted: "Google let me sleep."

Since then, Google in the online advertising market lead more inevitably shake. At present, 40 billion US dollars in the global online advertising market, Microsoft ranks Google and Yahoo, the third place.

"I think that Microsoft forced to a situation, if not through acquisitions, it is difficult to re-emerge in the area of the Internet, Microsoft's Internet acquisition strategy Yahoo is the final blow." Microsoft Jun Tang, former Chinese president said.

Declining aristocracy bargaining

Remained silent for 10 days, Yahoo in a press release that company's board of directors "unanimously" rejected Microsoft's bid. Yahoo Board said that the purchase price of 44.6 billion US dollars, "seriously underestimated" Yahoo's real value.

Yahoo's Jerry Yang, founder and CEO of the most hard-line opponents. He issued to all staff to the three e-mail, has repeatedly emphasized that Microsoft is "not invited," and hopes that the staff could "faithful."

1994, Stanford University doctoral students Jerry Yang and David Filo classmate in a trailer created a search engine Kaishanbijie, and it named Yahoo.

In the birth of Google, Yahoo Internet is a well-known legend, but also is known to the world the most visited sites. Yahoo's business model to emulate many later became the target.

No one foresaw that in just a few years time, because Yahoo and a series of strategic mistakes of the rapid decline. 2001, Yahoo has acquired missed a golden opportunity for Google.

In July last year, the shareholders of a boos, Yahoo Telisaimeier former CEO was forced to resign, and Jerry Yang was re-father, as CEO. Although he has pledged to take measures to lead the way Yahoo, reproducible end of the last century glory, but in the last month announced layoffs before 1000, he almost did not make any changes to Yahoo.

Even so, very few people have thought that Yahoo will be facing a sorrowful outcome. As a founder, with the once glorious and proud, Yang not reconciled themselves to the myth of such transfer.

Yang dislike for Microsoft is an open secret. "Yang would rather cut off their own fingers want to see Microsoft operating his own company.", "New York Post" quoted a former Yahoo employees as saying.

However, only hold less than 5% stake in the Yahoo Jerry Yang, the individual will have difficulty about the fate of Yahoo.
In fact, in the face of Microsoft's bid, Yahoo has some shareholders can not wait. Yahoo's shares very decentralized company insiders holding only a 10% stake, while the institutional investors and mutual funds hold a total of 71 per cent of the equity. This instability of the ownership structure is conducive to the management of Microsoft over Yahoo, Yahoo directly to the shareholders of talks.

Yahoo in the second day of the Board of Trustees to reject Microsoft, Yahoo held 1.36 million shares of Wayne County, Michigan, to the employees retirement fund sued Delaware, the District Court, and hoped that through legal channels Yahoo to seriously consider the request of Microsoft's acquisition.

One of the major shareholders also responsible for the Blackstone fund that Microsoft offer very attractive, after all, Yahoo now is not the choice of many.

Sources said that Yahoo's board of directors There are also serious internal differences. Is one of the "feelings", led by Jerry Yang, and the other camp is "rational", by the current Chairman of the Board Bostock leadership. The latter does not exclude up for sale, but hopes to sell at good prices in the bargain.

"The acquisition of Yahoo is important to Microsoft, if Microsoft can increase the purchase price to 40 dollars per share, Yahoo will be some of the major shareholders of the company sold Yahoo stock holders." Yahoo's second-largest shareholder Mei-sheng, a fund of funds management Manager Bill Miller in a letter to investors said.

"Losers Union," the future

A history of the largest Internet purchase of Albanians who are destined to lead.

February 13, has said that "Yahoo is not interested," Murdoch was included in the bid for the list. Report the news his name is the "Wall Street Journal." Reported that Yahoo is talks with News Corp. News Corp. proposed its own network assets will be integrated into Yahoo, and joint investment in a private equity fund to Yahoo equity injection, the total amount to 15 billion US dollars after the merger in exchange for 20 percent of Yahoo's shares , as the controlling shareholder.

There are rumors that, in addition to News Corp., Yahoo and Google have to find Time Warner's America Online talks. However, people generally believe that taking into account the "Monopoly," the Google and Yahoo alliance shots there is little likelihood, Yahoo and America Online possibilities of cooperation is not high.

Some also say that these prices are for the release of Yahoo's "smokescreen." Because everyone can see, Microsoft is determined to win this time.

Unilaterally announced the acquisition, the purchase price high-profile announcement, Microsoft's approach unusual thing. "We have this transaction will be made public in order to allow both shareholders and employees can understand the opportunities brought about by this transaction." Microsoft said.

Was rejected after a few hours to respond to Microsoft, will "take all necessary measures" to reach the deal. This means that Microsoft may be forcibly acquired, or in the Yahoo board manufacture a "coup d'etat." In a more than three months, Yahoo's board of directors will face reelection, and at this stage if Microsoft's board of directors rejected the deal, shareholders can elect to meet their needs a new board of directors.

February 16, Yahoo column for Lacey wrote in his blog, "Yahoo and News Corp. transaction could not have happened. Sources said Microsoft is expected within 10 days to the offer to 35 dollars a share , which won the support of Yahoo's biggest shareholders. "

Yahoo into Microsoft's embrace it seems that the only thing sooner or later, because this is the last battle of Gates. However, Microsoft and Google can win the war, is the crux of the problem.

How to deal with Yahoo that the business outlook was uncertain, as well as the new company's 90,000 employees to adjust, Microsoft will be a new set of problems. It could even be a joint Microsoft and Yahoo, pessimistically called "losers Union."

Microsoft executives strategic partnership vice president Joseph Fumeidi on his views on the transaction, the surprise is that he has never been mentioned in the competition with Google win, or even to catch up with Google. He said: "For those who wish to use other search engines, users, and hope that the other advertising platform for publishers, Microsoft bought Yahoo deal is a good news. Next two years, the total online advertising market will reach 80 billion dollars. such a huge market, Google can be completely beyond the second company to provide room for development. "