Microsoft - Yahoo deal, predicted development!

It's funny to see how investors are reacting. Many are selling while many more are holding, and hoping for a better deal. Most analysts believe that Microsoft might up it's offer few more dollars to sweeten the deal.

I was very excited to hear Jonathan Tower, managing director of Citron Capital confirming what I said few days ago, about Microsoft tactic of over valuing certain investments. Although he views it as "over paying", I on the other hand think this is a suitable tactic to block cheap acquisitions that might threaten Microsoft's strategic advantage. And, makes people feel good about them selves. (Facebook dudes were ecstatic for what they got). Sure the Venture capitalists will suffer, but bigger dudes with a lot of dough (Aka Google) will have to pay dearly to acquire these companies.

I feel sorry for the 1,000 employees that Yahoo is letting go, starting THIS WEEK! They couldn't have thought about a worse time to do this. They should have at least waited until this whole story is done. Few more months wouldn't have killed them, especially when the regular severance pay is going to be about 3 months salary.

Some are saying that it's true that 44bil undervalues Yahoo, especially when you take into consideration their over seas new subsidiaries (Yahoo Japan, Ali-Baba, and Gmarket) these are valued between 13 and 15 Billion dollars on their own. Which would become Microsoft property if this whole deal goes through. And it's most likely going to go through.

So what will the world look like after the merger!?

For me, I will still be using Windows Live messenger, and Google search! Unless I'm searching for Abu Trika's picture which was removed by Google because it said "Sympathise with Gaza"

Image acquired through Live search

But this guy is OK to roam the realms of Google! And Fifa .. with no one saying anything!

Image acquired from Google image search when looking for Abutrika

Yep the all "innocent Google"!

On other news, Yahoo shares went up 69c, while Microsoft went down 35c, Oh, and Microsoft still found some cash lying around one of the executive sofa's to buy cell phone software company Danger, co-founded originally by Andy Rubin, the same dude who made Android (which was later bought by Google and became the Google phone platform!)

So who's Microsoft's competitor? To better answer that question, answer this one: "Who isn't?"