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Essay / Research Paper Abstract
There is a potential merger of Yahoo and Microsoft. This 4 page paper looks at the advantages and disadvantages of the merger for consumers and the companies, discusses the motivations behind the potential merger and the impact it may have on the industry and competition, including Google. The bibliography cites 5 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEmicroyahoo.rtf
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Unformatted sample text from the term paper:
doubt that both Microsoft and Yahoo major actors within the information technology industry, there are fears that some commentators at a disadvantage will be felt by the consumers as a
less Microsoft decides to leave services offered by Europe who as separate the result may be less choice in software and more choice in advertising space, (this is a con)
(PC Magazine Online, 2008). It appears that if Microsoft does acquire Yahoo that there will integration, as during an interview with the
Wall Street Journal "Steve Ballmer" stated that the company would not need to of everything (PC Magazine Online, 2008). This can be seen as an indicator behind some of the
motivation for the merger; the ability to cut overheads and costs and rationalize operations at the same time as gaining increased market exposure which are a motivation in many acquisitions
and mergers (Thompson, 2007). When Ballmer was being interviewed he was talking about the advertisement systems in place on Microsoft and Yahoo, but there is a great potential that the
same attitude will extend to services such as online news, Web e-mail and business Web tools (PC Magazine Online, 2008). If this is the case then a major disadvantage of
the merger will be a reduction in choice of services for the consumers. This means that a reduction in choice of services will be a con, along with the job
losses that will result from the rationalisation. There is also a con in the opportunity cost of rationalization, integration may see some projects and innovations remain un-pursued. If the
merger does go ahead and Microsoft is able to acquire Yahoo this would give Microsoft a technology it requires in order to better the services it offers (a pro). Therefore,
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