Friday, February 19, 2010

Microsoft again starts to deal with Yahoo and puts an end for suspense

A much-awaited deal between Microsoft and Yahoo finally ends. Microsoft has expressed its interest and amount to buy Yahoo on 2006; due to some controversies, the deal didn’t come to an end. Then during 2007, Microsoft has again begun to deal with Yahoo and it was ready to pay $ 47.5 billion for the shares of Yahoo by 2008. However, Yahoo had not agreed with Microsoft for the deal and announced that it was going to withdraw the pact with Microsoft. Therefore, the Shares value of Yahoo down to $33 and yesterday it is again down to $15.
This controversy between two giants became a lollypop for the biggest search giant Google and it has reached the number one position. In order to overcome Google, again Microsoft and Yahoo have started to speak about deal. They have planned to work together for the next 10 years. Therefore, the deal will become a good opening for Yahoo search engine and make Yahoo a big rival for Google. At the same time, American government has announced that there is no objection if Microsoft and Yahoo work together.

Word wide Google holds 3/2 users while Yahoo has 7.4 percent users and Bing has 3.2 percent users. If the deal signs up, the most of the profit will belong to Yahoo as Microsoft is paying 88 percent of shares to Yahoo and $150 million in installment. Besides, Microsoft is acquiring more than 400 Yahoo employees. The work is in process in order to redirect the American users from Yahoo to Microsoft. However, within 10 years, Yahoo will be completely acquired by Microsoft.