Will Microsoft Beat Google If it Buys Yahoo

We have been hearing in news that Microsoft has a bid of $44.6 billion for Yahoo. Microsoft is trying to beat the Internet gaint Google , So it has launched so many websites similar to google like maps.live.com and live.com, ofcourse Microsoft has been the No 1 Software company in the world, in the past years both Microsoft and Yahoo have been trying to beat google. Microsoft said the combination of the two companies would create efficiencies that would save approximately $1 billion annually. The software giant also said that it had an integration plan to include employees of both companies and intends to offer incentives to retain Yahoo employees.

Yahoo said in a news release Friday that its board would evaluate Microsoft’s bid “carefully and promptly in the context of Yahoo’s strategic plans.” Despite their heavy investments in online services, both Yahoo and Microsoft have watched Google extend its dominance over Internet search and the lucrative online advertising business that goes along with it. In recent months, Yahoo has struggled to develop a plan to turn around the company under Mr. Yang, its co-founder, who was appointed chief executive amid growing shareholder dissatisfaction last June.

Yahoo’s shares closed Friday up 48 percent, to $28.38. Microsoft’s shares were down nearly 7 percent, and Google’s shares declined nearly 9 percent.

Microsoft, like Yahoo, has faced an uphill battle against Google. The company invested heavily to build its own search engine and advertising technology. Last year, it spent $6 billion to acquire the online advertising specialist aQuantive. Microsoft’s online services unit has been growing, but remains unprofitable.

Meanwhile, Google’s share of the search market and of the overall online advertising business has continued to grow.

So if Microsoft buys Yahoo , will it beat the internet gaint Google ? , Lets wait and see.

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