Recently,Microsoft wants to purchase Yahoo at $44.6 billion,however,this plan was rejected by Yahoo,because Yahoo thought Microsoft made a wrong decision,and also undervalued Yahoo.Microsoft always like buying some other companies in order to fight other strong competitor.This time,Microsoft also has the same purpose,as Google is becoming more and more stronger.It is a very big menace for Microsoft.Yahoo’s share is always at a very low price recently,that’s why Microsoft thought buying Yahoo is a good choice,and they asked the Yahoo’s shareholder to choose either cash or stock.Because of this plan,Yahoo’s share price is rising a lot.
It’s very hard to say this plan which Microsoft made is good or not.The reason is because: first,purchasing other companies is always a useful way to let a company become much more stronger,especially when Yahoo and Microsoft are not as strong as before.This plan may be can let the two companies both get the benefit.Second,Google is a good example of Web 2.0,and it’s really different with other websites as it can satisfy most people’s wants and needs.People always would like to try something new,so this reason made Google becoming stronger and get the bigger market to make more profits.In other words,i.e. Google is good at inventing new technology and using the another,the most satisfyed way to get more profit,whereas,Microsoft decide to use combination to get the benefit in the battle of business.Thirdly,although Yahoo said they won’t sell the company,the shareholder agree with Microsoft’s plan.May be Yahoo will be sold at last.
From this news,Google now thinks they will help Yahoo,i.e.purchasing it,to fight Microsoft.But Microsoft won’t give up,as if Microsoft would like to pay all the money in cash,it means Yahoo and Microsoft will both get the benefit,and Yahoo can say they were sold at a very good price,whereas,Microsoft could say they use a perfect strategy to purchase this company.However,paying all the money in cash doesn’t mean Microsoft is a big winner,because since this plan was published,Microsoft’s share price is falling a lot,and at the same time,Microsoft will lend some money from other banks or companies to buy Yahoo.It is a really big stress for Microsoft.So in my view,there is very long way to let both companies get the benefit.Combination is just a strategy to get the profit,however,at last,the whole market needs the way that can be satisfyed most people’s wants and needs,and the plantform must be big and cheap,even free.~~~
