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business current event 3

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Fire Board , Will Buy

The article reads easily enough . Pressure corporate giant Yahoo ! to succumb to the mounting investor pressures for them to ante up and go back to the table with Microsoft , but with a twist . Microsoft wants to come in and buy parts or the whole Internet giant on the premise that Yahoo ! capitulates to Microsoft 's demand that they fire their entire board and elect the board pushed by corporate raider and Microsoft ally Carl Icahn (Rob Hof . So what gives

The thing smells

of a bully trying to impose his will on the seeming victim and get them to kowtow to the proposition . But would the deal be to the advantage of Yahoo ? Not according to some Yahoo ! shareholders who think that the deal would just benefit the big IT giant , Microsoft (Hof . But again , not all of the shareholders are of the same page Some want Yahoo to buckle down to work on getting a deal with Microsoft (Hof . In the aftermath of the rejection of the company of that offer some of the company 's investors and shareholders have sued the company in to force it to give Microsoft a sceond chance (Solomon

Microsoft has already invested heavily in the online advertisng industry , but with the 44 .6 billion offer to Yahoo (Smith et al Microsoft has admitted that it needs this deal to catch with leader Google (Smith et al . Also , this deal affirms the importance that Microsft places on the online advertising industry and to focus on competing with industry rival Google (Smith , Macdonald , Cain , Frank Weiner .This could also allow the merged company to have greater access to the Asian market , since Google is not that popular in the region (Solomon . According to Claus Mortensen , IDC 's chief of new media digital market and advsiory services , the addition of Yahoo into the Microsoft group would give the software company a greater chunk of the Internet search engine market (Solomon

Mortensen avers that for Google to catch up , Google will push on with its full-Web anchored services to challenge Microsoft 's portfolio (Solomon . But will the two inherently different companies mix and make sweet economic music together or just end up clanging ? If the deal proceeds , it is vague who will end following who (Smith et al . As it stands , Yahoo will benefit most from the deal and is expected to stand out , relegating the MSN brand to a lower rung in terms of the branding of the products (Smith et al . But are the two giants the only ones ruuning the gamble here

More common occurences in mergers in any industry is the tally of laid-off workers from the acquired business entity . But whose employees have more to fear ? As Microsoft has nary an idea of the market that it wants to enter , it might not want to take much from Yahoo , as this might affect the intended outcome of the deal (All . IDC analyst Karsten...

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