The Top 5 Reasons Yahoo Is Shooting Itself In The Foot

With the new homepage and all between yesterday and today I have been way too busy to post, well guess what. I am here to post now. Apparently Yahoo! and AOL are close in a joint deal between the two (find the article here). It is highly recommended you read that article before we begin so you will understand what is going on. Yahoo was dumb the first time they avoided the Microsoft offer, now they are looking in different directions. They have proposed ad deals with Google and are working on a joint program with AOL, but these just aren't smart for their company or good for the shareholders. Here is your top 5.

#5) Google Is Better Off If Yahoo Doesn't Sell To Microsoft

The last thing Yahoo should want to do with this deal is help out their leading competitor, Google. Google already holds 68% of the market, and Yahoo only has an estimated 20% of the search market. If Yahoo does not sell to Microsoft Google still holds onto their share and is better off for it.

#4) Yahoo-Google Threaten Monopoly On Market

The possible deal between Yahoo and Google could potentially yield a monopoly. Google would essentially hold 90% of the market, give or take a few percentages. Not only would this cripple Microsoft, it would make it hard for any company to gain ground. This would be frowned on by many people and make life difficult for thousands of other search engines. We all remember the AT&T monopoly and it ended badly for them, and it will probably end bad for Google and Yahoo.

#3) AOL Doesn't Appeal To Shareholders

AOL holds roughly 1 percent of the search engine market. Yahoo's potential joint deal with them wouldn't really help them all that much in the search market and would leave them dry of materials. AOL just isn't as big as Microsoft an never will be.

#2) Microsoft Has Tools Other Companies Don't

Microsoft, if one thing is certain, has some of the best developers in the world. These also have the tools and materials needed to have a successful company. Microsoft offers something AOL doesn't and that is tools and money.

#1) Microsoft Won't Be Paying More

Microsoft will not be expanding on this offer I would doubt, let's face it-- they could go to the shareholders tomorrow and all but lock the deal up. Microsoft is already paying a couple dollars extra a share, which is more than a fair price when you are dealing with millions of shares. I would really be suprised if they upped the ante on this one. Yahoo should just sell.

There is your top 5 guys, sorry it was short. I have been really busy, and I hope you enjoyed it. If you have any questions just comment below. If you liked the article you can bookmark it below as well.

The Top 5 Reasons Microsoft WIll Get Yahoo

In a recent post I had covered the reasons Yahoo should sell, but here are the reasons Microsoft will end up with the company known as Yahoo--for now. If you would like to read the top 5 reasons Yahoo should sell, go here.

#5) Microsoft's Threatening Letters

In a recent letter to Yahoo Microsoft threatened the company, telling them that they will either sell or Microsoft will buy them from the shareholders. Microsoft knows this will inevitably lead to Yahoo's sell of the company. Yahoo is put into a tough spot and Yahoo will sell in the end due to pressure from the shareholders.

#4) Yahoo's Lack of Options

Yahoo is running out of options, their company is starting to slip and one of the few remaining options is to sell to Microsoft. If Yahoo is to wait much longer not only will Microsoft go to the shareholders, Yahoo will lose money on the deal. And as a final point, Yahoo has no where to hide, Microsoft is going to buy them out if they don't sell.

#3) Microsoft Gets What They Want

We all know they have the cash, and we certainly know they are determined. If Microsoft Does not get Yahoo it will shock me, because nine times out of ten they get what they want. Microsoft can buy anything they want virtually and at will can summon people to sell to them.

#2) Microsoft Has The Cash

Money has never been an object for Microsoft, unless of course it comes to them selling something. Microsoft, in the long run, will make their money back from Yahoo. Microsoft can take a much bigger fee than what they are offering.

#1) Microsoft Needs Yahoo and Much As Yahoo Needs Them

Microsoft is in a constant battle with Google, these two companies have gone at it for years. In order for Microsoft to get a better market share they must take a large chunk of the market and add it to what they already have. Yahoo needs Microsoft for financial reasons where as Microsoft needs Yahoo for market reasons.

If you would like to know more about Microsoft recent email to yahoo, go here. There are your top 5 reasons.