MIcrosoft-Yahoo: the reasons for a takeover
Strategy - Achieving critical mass in the advertising business and be more responsive in terms of R & D are the main motivations of the leaders of Microsoft to justify the takeover on Yahoo. Arguments decrypted by Vincent Bonneau, analyst at Idate.
"It's the next major step in the process of transforming Microsoft. "Steve Ballmer presents its bid launched on Friday 1 February by his group on its rival Yahoo. "We are already discussing for more than eighteen months," said Chairman and CEO of the publisher during a telephone press conference. "Yahoo and Microsoft share the same vision for online advertising. "
So far, the Internet portal has always refused the advances of his rival - the establishment of a commercial partnership in the merger. But the publication of annual results mast and the announcement of the abolition of 1000 posts earlier this week, Yahoo has weakened. "We believe that there is no better time to do this job," says Steve Ballmer.
"We are ready for dialogue," he adds, without specifying whether Microsoft would agree to review its proposal on the rise in cases where managers and shareholders Yahoo are deaf ear.
An offer too low for Yahoo?
Vincent Bonneau, analyst at the Institute of Audiovisual and Telecommunications in Europe (Idate), "If Yahoo really grows to the success of Panama, its platform launched a few months ago, it is not certain that OPA works on the first try. Microsoft's offer is based on a level of the lowest. "
A sense reinforced by the revelations of the American press. Last spring, Microsoft reportedly approached the administrators of Yahoo with an offer of 50 billion dollars.
Microsoft + Yahoo = 988 million unique visitors
The Redmond company says that this acquisition is essential for the two groups in their race behind Google. "Reaching a critical mass is essential in the area of online advertising," argues Kevin Johnson, president of the division platforms and services. According to him, if Microsoft and Yahoo are able to offer a platform unified advertising, it will be of benefit to advertisers. Especially in the long run when both groups have developed durable solutions in terms of behavioral advertising.
"The transaction makes sense if we look at the strengths of Microsoft and Yahoo, which complement each other well on services - portal, webmail, instant messaging - and on the geographical distribution - USA, Europe and Asia" Vincent Bonneau analysis. "Both groups have the same advertising model based on the hearing. By moving together, they create a global leader in display (banners, square, etc.). Since the market is highly fragmented in terms of audience. Let us not forget that everyone has, in addition to strong, especially with Microsoft Facebook.
On the other hand, they will not come back on the Google "search" and the market for listings. "In the area of online advertising, these are two different markets." According to figures from the institute Comscore, the cumulative worldwide audience of the sites of Microsoft and Yahoo would be 988 million unique visitors per month compared to 528 million for Google.
What about the brand Yahoo?
Microsoft also counts on the synergies between the teams research and development (R & D). "Currently, Yahoo and Microsoft engineers are working on the same subjects, we could combine these talents to accelerate innovation," says Kevin Johnson. "We could hire engineers, we know very well do, but in parallel, we have the market leader (Google, Ed), which is rapidly gaining market share," adds Steve Ballmer.
An R & D team enhanced allow Microsoft and Yahoo floor on new research technologies, such as engines or vertical semantic search, said Ray Ozzie, the "Chief Software Architect" of Microsoft. But above all floor on the social dimensions of applications and websites, in order to create "a more open web." "Yahoo has an enormous advantage in terms of content and community," he recalls.
By contrast, Microsoft executives have remained vague about the consequences in terms of employment, if the transaction succeeds. Likewise, they will have to take "specific action" in terms of brands, warned Steve Ballmer, as Yahoo, MSN, Windows Live, the future group ends up with a set of very famous brands
"It's the next major step in the process of transforming Microsoft. "Steve Ballmer presents its bid launched on Friday 1 February by his group on its rival Yahoo. "We are already discussing for more than eighteen months," said Chairman and CEO of the publisher during a telephone press conference. "Yahoo and Microsoft share the same vision for online advertising. "
So far, the Internet portal has always refused the advances of his rival - the establishment of a commercial partnership in the merger. But the publication of annual results mast and the announcement of the abolition of 1000 posts earlier this week, Yahoo has weakened. "We believe that there is no better time to do this job," says Steve Ballmer.
"We are ready for dialogue," he adds, without specifying whether Microsoft would agree to review its proposal on the rise in cases where managers and shareholders Yahoo are deaf ear.
An offer too low for Yahoo?
Vincent Bonneau, analyst at the Institute of Audiovisual and Telecommunications in Europe (Idate), "If Yahoo really grows to the success of Panama, its platform launched a few months ago, it is not certain that OPA works on the first try. Microsoft's offer is based on a level of the lowest. "
A sense reinforced by the revelations of the American press. Last spring, Microsoft reportedly approached the administrators of Yahoo with an offer of 50 billion dollars.
Microsoft + Yahoo = 988 million unique visitors
The Redmond company says that this acquisition is essential for the two groups in their race behind Google. "Reaching a critical mass is essential in the area of online advertising," argues Kevin Johnson, president of the division platforms and services. According to him, if Microsoft and Yahoo are able to offer a platform unified advertising, it will be of benefit to advertisers. Especially in the long run when both groups have developed durable solutions in terms of behavioral advertising.
"The transaction makes sense if we look at the strengths of Microsoft and Yahoo, which complement each other well on services - portal, webmail, instant messaging - and on the geographical distribution - USA, Europe and Asia" Vincent Bonneau analysis. "Both groups have the same advertising model based on the hearing. By moving together, they create a global leader in display (banners, square, etc.). Since the market is highly fragmented in terms of audience. Let us not forget that everyone has, in addition to strong, especially with Microsoft Facebook.
On the other hand, they will not come back on the Google "search" and the market for listings. "In the area of online advertising, these are two different markets." According to figures from the institute Comscore, the cumulative worldwide audience of the sites of Microsoft and Yahoo would be 988 million unique visitors per month compared to 528 million for Google.
What about the brand Yahoo?
Microsoft also counts on the synergies between the teams research and development (R & D). "Currently, Yahoo and Microsoft engineers are working on the same subjects, we could combine these talents to accelerate innovation," says Kevin Johnson. "We could hire engineers, we know very well do, but in parallel, we have the market leader (Google, Ed), which is rapidly gaining market share," adds Steve Ballmer.
An R & D team enhanced allow Microsoft and Yahoo floor on new research technologies, such as engines or vertical semantic search, said Ray Ozzie, the "Chief Software Architect" of Microsoft. But above all floor on the social dimensions of applications and websites, in order to create "a more open web." "Yahoo has an enormous advantage in terms of content and community," he recalls.
By contrast, Microsoft executives have remained vague about the consequences in terms of employment, if the transaction succeeds. Likewise, they will have to take "specific action" in terms of brands, warned Steve Ballmer, as Yahoo, MSN, Windows Live, the future group ends up with a set of very famous brands
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