9. What's the next step of Google and Yahoo?

What's happening in IT world?As you know, the M&A between MS and Yahoo was failed. This January, the stock price of Yahoo was &19.18, and MS suggested $31 to Yahoo. However, it was refused because they thought they deserved to get higher price, like $40. Later, MS increased the price up to $33, but it was not enough for the CEO of Yahoo. After failing in that M&A, stock price has gone down to $24.47, and it made stockholders angry. Jerry Yang, who is the CEO of Yahoo said they would find another company for M&A and the purpose was to have long-term competency. He also said that he did not try not to sell the company to MS, and if they suggested proper price, they would opened the door.MS insists that they are OK withoutYahoo. He thinks it is just a part of M&A strategy and Yahoo is neccessary equity for MS.However, MS seems to fold M&A with Yahoo completely, and try to find another company for M&A like AOL, Facebook and My Space. Through the breakdown of the M&A, without threats from MS, Google is able to expand their on-line ad market by coorperating with Yahoo.




So what they are going to do? Yahoo already introduced Google's Adsense. Google is considering image ad as a more effective way in advertising. And there is possibility that they coorperate video business together and developing technology for video advertisement. I really hope they don't put any ad before watching video. From someday, Korean video websites started to put advertisements on the every videos. It is more annoying than watching TV because there are only one or two ads before watching a video, and I cannot do anything during the time excepting just watching the ads. I hope Google will keep their motto in doing on-line ad business in the boundary of not hurting user's convenience, or they might become the same search engine like others. I am curious that why Google thinks of image ad and video AD now?It is not a new strategy as you see in Korean websites. Well, we will keep watching what they are going to change in a new way. And it looks a little weird that two search engine collaborate together because they are competitors each other in the same field. It is not the relationship like Google and Facebook or Google and Youtube. In Korea, after the success of NAVER, every domestic search engines were dead. The key point is how Google will make benefit through this opportunity without monopolying the market, and how Yahoo will achieve their purpose for long-term competency. /posted by 20500580