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Microsoft offers to buy Yahoo

February 1, 2008 by Michael Boyle

The big news this morning is that Microsoft has offered $44.6B to buy Yahoo, the figure representing a 62% premium on the share price at yesterday’s market close. It’s very unclear at this point what will come of this, but as a user I find it hard to see how such a tie-up could be beneficial to me. From my perspective, although MS has done some interesting things on the net, none of their initiatives have been focused on delivering the best quality of user experience or even innovation – their plays have seemed to by cynically based on scaling up so-so experiences and hoping that the brute force of that scale can make them important. What we learn from Google, however, is that though scale is important, it is deeply related to quality and innovation in a way that consumer software never was.

Update: Techcrunch has looked at some of the numbers.

Tags: Business, Google, Microsoft, Software, Yahoo

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