Tech Boom 2.0: Electric Bugaloo

An interesting theory on Microsoft and Yahoo that I simply could not fathom occurring... until now.

 

May 18 (Bloomberg) -- Microsoft Corp.'s plan to buy AQuantive Inc. for $6 billion increases the likelihood that the software maker will also buy Yahoo! Inc., Goldman Sachs Group Inc. analyst Anthony Noto said today.

Yahoo would plug a ``strategic hole'' at Microsoft that isn't filled by the purchase of AQuantive, announced today, Noto said in a note to clients. AQuantive, which creates Web ads and measures whether they reach the target audience, doesn't give Microsoft the roughly half a million advertisers required to compete against Google Inc., Noto said.

``We believe the odds of a deal happening over time actually increases,'' New York-based Noto wrote. ``Microsoft is willing to do deals that are a strategic necessity.''

Thank Bloomberg.

 

Obviously, no one learned anything from the 90's.

 

And I would suspect that Yahoo probably does NOT want to be acquired.  That's a fairly clever bunch.  Stay tuned.