I tried tirelessly to blog about something else besides the Microsoft Yahoo bid, but I can’t seem to get away from it.
So, as many of you may already know, Microsoft made a bid for Yahoo late yesterday. Offering a whopping 45 billion to acquire the search mogul. For some, on face value this may appear odd, as Microsoft is third in the search game, being beaten by the obvious Google and Yahoo!. So, why is the third ranked search giants bid so attractive to Yahoo!? Their Monday earnings report should be a clear give away.
On Tuesday of this week, Yahoo! saw their stock price drop to a four year low. This was the cause of their Monday release, when they posted a lower than expected quarterly profit and announced the realignment of 1,000 jobs. To be exact, Yahoo! posted a 23% drop in revenue for Q4′ of 2007. With this, the timing appeared to be right for Microsoft to approach with the talk of acquisition. Note that this isn’t the first time this type of talk has spurred, but it definitely is the first time that the timing seemed right for both. As expected, since the announcement of Microsoft’s bid, Yahoo! shares have jumped by 48%.
Now the speculative part – what does this mean for publishers?
Many publishers have relationships with Yahoo! for either their automotive, employment or real estate categories. I suspect that these fronts will continue, but the possibility of adding on functionality will enhance - like Microsoft Live Expo.
If you are a publisher already facilitating an AdCenter (Microsoft) or Ad Network (Yahoo!) arrangement for your advertisers, you will probably soon be able to offer them the partnering network. Moreover, with the forces being joined, your advertisers may start to see better results than what they are accustom to with their Google AdWords program.
Not many of our publishers have delved into Social Networking to improve their products, but I guarantee you that if Microsoft and Yahoo! should join forces, it will be difficult to decline to dabble on the social front. Think Facebook!
It will be interesting to see how Google responds to this. I do find it funny that I haven’t heard anything from them. If anyone has a Google update pertaining to Microsoft’s bid to acquire Yahoo!, please post it here.
written by Beverly Crandon
\\ tags: Microsoft, Publishers, Yahoo
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