Bigmouthmedia, part of the GlobalMedia Group is a leading digital marketing agency based in the UK, Mainland Europe, Asia and the USA. With over 300 clients across all sectors, ranging from SME’s to major global brands, bigmouthmedia offers a range of search marketing services leveraged to offer its clients maximum return for their online investment.
Nothing ever remains staid for long in the realm of internet search. Only this afternoon, a little-known firm called Microsoft, is interested in building its online advertising empire with the acquisition / merger (depending on what report you read) of another little company you may have heard of, called Yahoo!
This is indeed, big news! Its, what is known in the finance market, a "Whopper!" of a news story! But what does it all mean and who benefits?
The benefits from this news are apparent from today's NASDAQ figures. The market was so buoyed by the rumour, that the Yahoo! share price jumped a massive 19% from $5.19 at opening to $33.37 within minutes of the news being released. A quick glance at Bloomberg also shows that this is the greatest jump Yahoo! has seen in 4 1/2 years! If I were a Yahoo! shareholder I'd be dancing in the streets just now!
Interestingly, the news didn't do much for Microsoft’s share price which were down slightly by 1.7% to $30.47 (at time of writing). Doesn't this seems strange? Well it is on the face of it.
However, despite recent efforts to break into online advertising, Microsoft have struggled to make headway against the current search engine of choice: Google. This means that software remains Microsoft's biggest profit driver, and spending the whopping amount of $50billion to acquire a company in the area you’re least experienced - not to mention least profitable - makes people nervous.
Especially city people!
Chris Cathcart, finance vertical strategist for bigmouthmedia said of the proposed deal:
"Recent years have not been kind to Yahoo!, and their growth has been slowing down. Last quarter, their revenue growth was 7% - the first time its been below 10% in five years. This deal will be good for both them and Microsoft as the deal will take Microsoft's online market share (in the US) from 12% to 38.5% in comparison to rival Google’s’ 48% market share."
However, it’s all yet to be seen if any deal is actually going to transpire as both Yahoo! and Microsoft are giving the media the traditional "No Comment" response. On a personal level, I hope it does go through: its been a while that anything this exciting happened in the markets - let alone the search engine industry.
And its good to see Microsoft getting back into the things they’ve been renowned for in the past, with the return of their in-famous "Can't beat 'em, Buy 'em!" attitude. The difference is this time they are taking on a big dog! And big dogs often bite!
- Related Videos
- Related Articles
- Ask / Related Q&A
- Microsoft, Yahoo or Google, who will win the paid search battle in 2010? Recent acquisitions might add $10 billion in revenue to one company's pocket
- Tobias Ridpath - Microsoft-Yahoo in search business
- Microsoft + Yahoo Deal - Is Bing the Bartz-Ballmer love child?
- How the Microsoft-Yahoo Deal Changes Pay-Per-Click Advertising
- Microsoft's Another Offer: Yahoo's Same Answer
- And Then There Were Two! Does Microsoft Plus Yahoo Eq LT Google?
- Microsoft next step towards engine market
- Microsoft and Yahoo finally tie the knot
Intranet: Consummate Communication
By: Robin Richard | 22/11/2009These days, intranet has emerged as one of the most reliable and important communication tools. It has been used for knowledge sharing and internal communication all through the leading corporate houses across the world.
Online Freelance Work
By: Reyna Flor Nadera | 22/11/2009Online freelance work is a great way to beat a recession and still earn an income even if you don't have a full time job. This type of work requires a specific set of skills that you can market to reach potential clients. These clients are all looking for someone that can understand their vision and produce a logo, article, or web page that expresses the ideas they want to convey to customers.
Let’s Share Information Effectively With Intranet
By: Robin Richard | 22/11/2009It took a while for intranet to establish its prominence across the world. But, now that it has become the most sought after technology driven information sharing platform, unprecedented developments have been observed across the world – Intranet is here to thrive.
Intranet Surge: Just The Early Days
By: Robin Richard | 22/11/2009Considering all the aspects, associated with Intranet, it is pretty easy to understand that Intranet has emerged as the buzz word in the corporate world – all across the globe. There can be various reasons to support the fact that Intranet has been progressing with a staggering rate.
Earn Money On The Internet With Pay Per Click Programs
By: Lyle Holmes | 22/11/2009Lyle Holmes' Monthly Income From Home Site offers tips and information on running a blog, home business, affiliate marketing program and much more. To find out how you too can succeed online, take a look at the web site here: http://www.monthlyincome-fromhome.com/
The Truth About Internet Marketing
By: Alison Wood | 22/11/2009There are many fallacies about internet marketing around and they veer from the sublime to the ridiculous.
Cell Phone Cash Review - Legit: Yes, No?
By: Landon Stewartt | 22/11/2009Find out in this Cell Phone Cash Review if it's a legit money making machine, or just another scam to stay away from.
What Does Google Store About Me?
By: Gregg Housh | 22/11/2009There is no question about the impact of Google on the way we interact with the internet. Beginning with a simple yet powerful search engine, Google has grown through development and purchase of other tech companies into the biggest technological conglomerate since Microsoft. It's no coincidence that "to google" has...
Understanding the Complexity of Through Life Capability Management (tlcm)
By: Martin Mcallister | 29/08/2007 | FreeThis article looks at the inherent complexity challenges faced by both the UK MoD and the defence industrial community to ensure the successful implementation of Through Life Capability Management. It examines the disparate capability priorities set by the varying Defence Lines of Development and discusses the requirement for a common currency by which to evaluate them.
Lease, Don't Buy, for Business Savings
By: Martin Mcallister | 05/07/2007 | Small BusinessNo matter how big or small your business might be, you will always need equipment and supplies. Leasing equipment is one option that allows you to get the things you need for your business, without having to pay for the items up front.
Consumer Debt: Where Did it Come From?
By: Martin Mcallister | 28/06/2007 | CreditConsumers in the UK have a love affair with credit, but recent figures show that the love affair is spiralling out of control. So, what has caused the rapid rise in consumer debt?
The Growing Role of Space in Earth Observation and Navigation
By: Martin Mcallister | 21/06/2007 | TechnologyAs a first collaboration between the European Space Agency (ESA) and the European Commission (EC), Galileo was extremely ambitious. With hindsight, the desire to set up a public-private partnership in competition with GPS was perhaps too ambitious. But with the Global Monitoring of the Environment and Security (GMES) programme now taking shape as the second joint ESA-EC programme, what lessons have been learned so far from Galileo and GMES?
Pushing the Boundaries of Space in the 21st Century
By: Martin Mcallister | 05/06/2007 | ScienceCost effectiveness, risk reduction and international co-operation are all vital to maintaining the momentum and success of 21st century space exploration missions.
Microsoft to Buy Yahoo!? What Does it Mean for the Search Industry?
By: Martin Mcallister | 04/05/2007 | InternetToday's news carries details of talks between Microsoft and Yahoo! with a view to the former buying the latter.
Realising the Operational Benefits of Virtual Maintenance Training Systems
By: Martin Mcallister | 03/05/2007 | TechnologyHow virtual maintenance training systems are enhancing the learning experience for the military’s support teams to deliver improved operational performance for front line equipment.
The Future of Defence Learning
By: Martin Mcallister | 28/03/2007 | TechnologyThe vision of Network Enabled Operations demands a new approach to the definition of defence learning programmes.