Microsoft Yahoo Merger 50 billion


I submitted this story to Huliq a few minutes ago.

Microsoft and Yahoo Merger 50 billion US dollars

Big high-tech news today is the possible merger of Microsoft and Yahoo. The rumour goes that they are in an early discussion. There has been speculation around the possibility. There were talks about a merger two years ago. Things have changed. Google and Apple have been making the headlines lately.

Both Google and Apple are making good press and they have been releasing new products. Microsoft has been accused for not being innovative. Yahoo, the leading search engine for some time, has been over taken by Google.

Google is the market leader in Internet search with 50 % market share, Yahoo and Microsoft combined are having 40 % and the rest (10 %) is shared by several smaller search companies. Google was ranked as the highest value brand (66 billion U.S. Dollars) by BRANDZ: Top 100 brands in the world.

There are some interesting arrangements between Apple and Google as well. The CEO of Google, Eric Schmidt is on the board at Apple Inc. The Apple iPhone will be released next month and one of the features is Google maps. This provides some material for further speculation. Google wouldn’t need to present its own mobile phone and these two companies would continue to make headlines.

Microsoft is still a great money machine and has no trouble paying the 50 billion US dollars, the price tag for Yahoo. The urgency of this arrangement is explained by the latest acquisition by Google. Microsoft was probably also negotiating with DoubleClick. Google closed that deal with 3, 5 billion dollars.

The Finnish Mobile giant, Nokia, has also been in the rumours. There is an urgent need to find a way to improve its market presence in the US market. Palm has been high on the list, but Nokia has to work out the Nokia Siemens Network acquisition first. Nokia announced today that they will decrease the number of employees in the Nokia Simens Networks with 9 000 until 2010. The effect in Finland will be 1 500 to 1 700 lesser high-tech jobs, and 3 000 in Germany. Nokia has promised to show remarkable improvements in US during 2008. Is Palm a part of that arrangement?

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