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MicroHoo!

As I was scrolling through the New York Times Online front page I couldn’t help but notice this headline – Microsoft Bids $44.6 Billion for Yahoo. I hit a link that took me directly to a proposal letter from Microsoft to Yahoo!. Check out the letter for yourselves – http://dealbook.blogs.nytimes.com/2008/02/01/microsofts-letter-to-yahoo/

Now, I live in Japan where most everyone is wired to Microsoft operating systems (as is the rest of the World), and Yahoo! Japan is one of the biggest IT companies, if not the biggest, in Japan. Still though, when you flip on a computer you see Google’s dominating presence in the form of Google Ads, and other little features that make Google a household name. I think the Japanese even use the term “Google” to refer to internet searching (no matter what search engine they use). And now social utility sites like facebook are appearing on everyone’s LCD. I guess this merger isn’t about what’s happening in Japan because by all accounts from the Land of the Rising Sun, operations within these two companies are just peachy. If I hadn’t opened the NY Times website I would have never guessed this merger could ever take place, or even be on the table. That said, after some thought (about 5 seconds) I can’t say I’m surprised. Google is kicking everyone’s ass, and like I said before, with these new social networking sites like facebook (in Japan MIXI is really popular), what can you expect. There is a specialty engine out there for everyone.

I’m sure if Microsoft and Yahoo! can bridge their differences they can wrest some market share control from Google. In any case it should be interesting to see how other players in the industry react.

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