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  • 1. “ A deal against the KING” From: Jay R Modi, MBA
  • 2. In the past….
    • In spring 2008, Microsoft made a $47.5 billion hostile offer to buy Yahoo that went into vein.
    • It led to lots of soul-searching at Yahoo and the replacement of its co-founder Jerry Yang with an outsider, Carol Bartz, in the chief executive role.
    • continued…
  • 3. In the past….
    • In summer 2008, Microsoft denied its interest in acquiring Yahoo, but said that it would like to enter a deal for Yahoo's search advertisement business.
  • 4.
    • … ..and finally the deal got stuck against our own, yes its our on 29 th July 2009
  • 5.
    • … ..the whole economy was still recovering from the clutches of recession but the world’s largest software giant got its wish accomplished.
    • continued…
  • 6.
    • … .. gets better opportunity to compete more effectively with Google in online search and advertising.
  • 7.
    • … .world’s second largest search engine
    • will be directly benefited to use Microsoft’s search
    • technology on its website.
    • continued…
  • 8.
    • … . also receives a big bump in annual revenues, 88% of the search-generated ad revenues from its own sites for the first 5 years of the 10-year deal, much higher than is standard in the industry.
  • 9. Can Yahoo-Microsoft jointly capture half of the market share?
    • Well its hard to predict this so early but its not that difficult…..
    • continued…
  • 10. Can Yahoo-Microsoft jointly capture half of the market share?
    • is launched couple of months back and is getting positive reviews.
  • 11. My thoughts…
    • Personally I’m obsessed with using Google but when I searched with my name “Jay R Modi”, surprisingly I got the same number of hits that I get in Google.
    • So if not better, I can say that is as good as Google.
  • 12. Can Yahoo-Microsoft jointly capture half of the market share?
    • Yahoo-Microsoft’s combined share is less than half of the Google’s total market share
    65% 8% 20%
  • 13. My thoughts…
    • For the next 5 years, there is no chance to surpass Google. Yes, I am quiet confident on this.
    • Google has 2/3 of market share not just by fluke but its because of “Customer satisfaction and Customer loyalty”
  • 14. Can Yahoo-Microsoft jointly capture half of the market share?
    • Under the 10-year deal, Yahoo.com and Bing.com will maintain their own branding but search results on Yahoo.com will say "powered by Bing." Yahoo, in turn, will be responsible for attracting premium advertisers.
  • 15. My thoughts…
    • I think that Microsoft got a bigger bite over burger.
    • It has got market share from 8% to 12% with no upfront payment.
    • continued…
  • 16. My thoughts…
    • Microsoft also has revenue share of ads served over Yahoo’s much larger volume.
    • … .and how can we forget the increased audience for Microsoft among internet users.
  • 17. Some quotes from the greats…
    • When the shares of Yahoo fell 12 percent, to $15.14, after the deal was announced.
    • “ It certainly feels like Yahoo is giving away their strong and hard-fought share of the search market for really a modest price.”
            • Darren Chervitz , the co-manager of the Jacob Internet Fund (owns about 100,000 shares of Yahoo)
  • 18. Some quotes from the greats…
    • After the deal announcement.
    • "I got an opportunity to swing for the fences in search."
            • Steven A. Ballmer , Microsoft's chief executive
  • 19. Some quotes from the greats…
    • After the deal announcement.
    • "By combining the ... technology of both companies, we can create a real, viable alternative for advertisers.“
            • Carol Bartz , Yahoo Chief Executive
  • 20. My Questions ???
    • Is this deal going to get a green signal from antitrust hurdles like EU?
    • How this deal will affect customers?
    • Can we expect any new product or feature from Google as an answer to this?
    Please leave your comments to answer this questions. I hope you enjoyed this presentation.
  • 21. References
    • www.businessweek.com
    • www.cnnmoney.com
    • www.blogs.nytimes.com