I’ve gotta give Steve Ballmer and crew a pat on the back. The Microsoft acquisition offer for Yahoo is the most fantastic idea they have come up with since the release of Vista. Unfortunately, Microhoo is not going to topple
the top player Google anytime soon in the online advertising world.
You can’t take Microsoft, add Yahoo juice and get something magically better. Microsoft and Yahoo have relatively poor search results when compared to Google. Combined, they also do not have anywhere near the online advertising inventory that Google has available. Google dominates the online office suite (at the moment) with Google Docs, which is what I think got Microsoft on their case.
According to the WSJ, Yahoo is going to reject the offer on Monday. I speculate that Microsoft would raise their offer to $40 a share, they’ll do anything to be second best.