Microsoft's Yahoo bid

Well, its a known news that Microsoft has bid about $44 billion to acquire Yahoo and that Google has cried foul over this deal. Let me try to analyze this from 4 perspectives:

Google: It claims that Microsoft is trying to bring its monopoly in the desktop space to the realm of the internet, creating a question mark over the openness and innovation of internet - its hallmark qualities. Is this true? Well, the merger of Microsoft and Yahoo will create a powerful number 2 to Google which is a virtual monopoly in search engine space. More than 50% of the chat and email space and 10% of the entire internet search space is occupied by these 2 players compared to 75% of the internet search space by Google. Google is slowly encroaching into Microsoft's territory by Google Docs and other applications and this is a solid hit in the face by Microsoft giving a viable threat to Google's dominance in internet.

Microsoft: Internet is going to be the future. Be it SaaS - which is gaining more acceptance, Web 2.0 and the likes - the future revenues are from the internet. As a slow starter, Microsoft could not compete with the dominance of Google. By merging with Yahoo which has a excellent brand value, it provides a very viable second alternative to Google. Further, it can provide a composite range of advertising options which hitherto are not present through Google.

Yahoo: Yahoo has flouted in and around with rumours of takeover now and then. Yahoo has a strong brand name and loyalty by being one of the earliest players in the Internet. But its dominance in the internet has been greatly reduced with the growth of Google. Be it chat, email etc., Google is slowly encroaching into the market and mindshare of Yahoo. Its a fading brand. It has 2 options in front of it now - accept the Microsoft bid (may be at a higher price / valuation) or go alone (with indirect help from Google). What it does remains to be seen.

My viewpoint: The logic of Microsoft bringing its dominance into internet by taking over Yahoo is pure bullshit. Google has no authority to say it since it plays and will continue to play its virtual monopoly position in the internet to perfection. You will be surprised at the amount of information Google holds about you - right from your personal details through Gmail, to your interests through search queries, your friends circle through Orkut, your interests through YouTube, your pictures and albums through Picasa, and further your official documents through its offerings. That's a wealth of information that you entrust with a single corporate entity. Microsoft + Yahoo will prove to be a tough competitor for Google - no doubt about it. Openness and Microsoft may seem like oxymoron - but if you had an inkling of idea regarding the latest news - Microsoft has taken bold steps towards open source technology. Its integration of PDF and Open Office formats into the Microsoft Office suites is a case in point. And monopoly is not necessarily bad - Google with its search engine, Microsoft with its OS and office software, Intel with its microprocessors. I for one, do support Microsoft's takeover of Yahoo. Let's see - the future promises to be entertaining.