This link has been bookmarked by 3 people . It was first bookmarked on 02 Feb 2008, by Bill H.
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02 Feb 08
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MSFT laid out the four areas of advantage, namely 1) scale economics of audience and advertisers; 2) R&D capacity; 3) operational efficiencies; and 4) emerging platforms like mobile, video, and social computing.
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A combined MSFT/Yahoo/Facebook deal at some point in the future could be the media company of the future
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We believe that they will do *everything* possible to avoid being acquired. Their most likely savior would be Google, in that Yahoo! would turn over all of its search advertising to Google in exchange for a guarantee. If Google was willing to pay $900 million for MySpace's search advertising, Yahoo! would get a huge premium. That would be enough cash to bolster Yahoo!'s efforts to reposition its efforts as a portal and display advertising powerhouse.
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That's Google real threat -- the ability to leverage today's search relationship into Google Domains and eventually, software as a service that could undermine Microsoft's long-term position -- and as Kyle McNabb and Rob Kplowitz point out, at risk is Microsoft Office's current dominant position. To that end, Microsoft is buying significant share with Yahoo!, not only from search users, but also search advertisers and other relationships via Yahoo! Store.
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I've long believed that the media business is about connecting marketers and to their audiences. And in this day and age, you need to have outstanding technology to do that.
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With a combined audience, and the potential of leveraging their base of email and instant messaging users, they could overnight create one of the largest socially connected audiences online and become the foundation for an "open" social graph. And as I mentioned above, the acquisition of Yahoo! could well position Microsoft to make a bid for the darling of the moment, Facebook.
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01 Feb 08
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