Google missed earning target, Microsoft offered to buy Yahoo
For the last few hours, there are 2 interesting development of top 3 internet search engines company
Google miss earning forecast
Even though Google continue to be in black (profit) and its profit continue to rise to 1.21 billion from 1.03 billion on the same period a year before, but the fact that it miss the forecasted earning set by market analyst is kinda worrying the investor. OK on the simplest word, investors expect more but Google provides less. What does it mean? This is how I understand. Google’s revenue comes mostly from advertising, and big chunks of it came from the US.
At the moment, US economy is not that stable after the subprime crisis that happened from last year. Financial institution such as Citibank and JP Morgan has loss billion of dollar in their mortgage loan. Due to this also, consumers becomes more careful in spending their penny.
What is the connection between this and Google’s earning? With economic slowdown, the spending on advertising will slightly affected . So the rest is like a Domino effect, the slowdown on the other end will affect the other end along the road and so on
The most significant effect to us is the weakening of US dollar which causing you Adsence earning in USD converted to local currency lesser than usual.
Microsoft offer to buy Yahoo for 44.6 billion
Another not really shocking news, after MS announced their batter than expected profit last quarter, and the gloomy outlook of Yahoo. Ok, this is not rumors anymore. Microsoft has attempted to buy Yahoo before but it was rejected. But now, Microsoft is trying it luck again. Ironically, MS tabled the offer after Terry Semel, Yahoo chairman who’d rejects their offer earlier step down.
What is the problem with Yahoo? Why Yahoo has never recovered from their downfall? Well, the problem is within themselves. Yahoo has the most traffic in the world, but they have problem converting them into earning. Its project such Panama Project is not successful. Same fate goes to YPM which is still in beta stage after a year. Sigh
MS smell the opportunity and definitely trying to take an advantage of Yahoo current situation with hopes to catch up Google who lead the online business market. And with piles of cash it has, buying Yahoo is just another investment to grow bigger
What do you think of the whole story. Can Microsoft buy Yahoo and overtake Google???
I’d like to see would MS and Yahoo together could do what neither of them separately managed-to put in jeopardy Google’s position as undisputed number 1 in search. Don’t think it’s realistic that Google’s position can be overtaken, at least not soon and not easy, but adding some pressure and more competition can happen.
If you read google blog today, they are attempting to delay the acquisation process
If Microsoft really successfully take over Yahoo….it will be a battle between 2 giants. I think a lot of people will benefit from it. However, the execution is not confirmed yet, is it?
I’m not sure if Microsoft’s attemp will tuen out to be a success but I prefer seeing them compete with each other than observing Google monopoly the whole market.
Competition will greatly benefit the users and advertiser.
Yeah, this issue become more interesting if you read tech news everyday, a lot of speculative, but this is how it works rite, the corp America
I agree at one point. But MS has monopolized desktop where 95% of computers were running on their OS. So having Google on internet is at least give MS some challenge. But Google keep growing as well, so 1 day it is not possible it become like MS on internet