...Microsoft’s Bid for Yahoo! Timeline As early as in late 2007, Microsoft proposed a number of cooperation alternatives with Yahoo! ranging from commercial partnerships to a merger, which were rejected by Yahoo!. Regarding to Microsoft’s proposal of acquisition in 2008, here are some key issues: Late 2007 Yahoo! rejected partnerships or merger proposal from Microsoft 31/1/2008 Microsoft announced its bid for Yahoo! at US$31/share 11/2/2008 Yahoo! rejected the offer, saying that it undervalued the company 28/2/2008 Google released news that with willingness to acquire 20% Yahoo share 6/4/2008 Final call from Microsoft – threatened Yahoo! Board with a proxy battle 2/5/2008 Yahoo! asked for US$37, Microsoft rose to US$33 4/5/2008 Microsoft withdrew US$47.5 buyout offer 5/5/2008 Yahoo!’s value dropped to $34 billion 17/5/2008 Yahoo! accepted the price $33-34, but Microsoft only interested in search business, Yahoo decided instead to sign a search advertising deal with Google. Microsoft’s Motivation of Acquisition After the failure of the deal, Steven Ballmer was made fun by the public that his greatest contribution during his tenure was: not able to close the deal. Why would Microsoft pay such high cost to acquire Yahoo! at the first place? As we know, Google was the dominant player in this industry and it kept consolidating its dominance through acquisition. Microsoft was eager to content against its biggest rival. The combination...
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...2. Introduction 1. Background of the Company [pic] Microsoft is one of the biggest software and IT companies in the world. The industry touches every region of Technology. Its current best-selling products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software. They cover Operation System (Vista and Windows 7), Server and Tools Division (Windows server 2008, VB and SQL), Online Services Business division (MSN and the search engine Bing), Microsoft Business Division (Microsoft Office), and Entertainment Devices Division (smart phones, XBOX and MSN TV). Microsoft mission is to enable people and businesses throughout the world to realize their full potential. It develops software, hardware, service and solution to achieve this goal since it established at 1975 by Bill Gates and Paul Allen in Albuquerque. In 1980, Microsoft formed a partnership with IBM that allowed them to bundle Microsoft’s operating system with IBM computers, paying Microsoft a royalty for every sale. With a real big range of service IT service, we can say the client of Microsoft is unlimited, from OEM, business, and individuals. And the competition is all over from every division, such as Apple in PC Market and Google in Online Service Market. [pic] Yahoo! Was started at Stanford University in January 1994 by Jerry Yang and David Filo. Both of them were Electrical Engineering graduate students when they created a website named “Jerry and...
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...สำหรับความสำเร็จของผู้ก่อตั้งกูเกิลในช่วงแรก การพลิกปัญหา Keyword spam บนเวปให้กลายมาเป็นโอกาส โดยการแก้ไขมัน ในขณะที่นักเรียนที่ Stanford นำไปสู่ชุดคำสั่งแบบเรียงตามลำดับหน้าที่มีชื่อเสียงของ Sergey Brin’s และ Larry’s แทนที่จะมานับจำนวนคำของ keywords เหมือนการหาข้อมูลแบบเก่าๆ พวกผู้ก่อตั้งได้คิดค้นการหาข้อมูลที่เขื่อถือได้ผ่านทางเวปไซต์ที่เชื่อมต่อกับหน้าเพจ หรือ ใช้การ votes เพื่อที่จะชั่งน้ำหนักของผลลัพธ์ที่มีความเกี่ยวโยงกัน Google focusing on the user คือ กูเกิลใส่ใจผู้ใช้งาน ถือเป็นสิ่งสำคัญที่จะดึงดูดผู้คนในเริ่มแรก เนื่องจาก นอกจากการค้นหาใน White search page ที่ง่ายและเชื่อถือได้แล้ว ความแตกต่างของตัวโลโก้ที่มีสีสัน ไม่มีโฆษณาหรือ Editorial content (เนื้อหาความคิดเห็นจากบรรณาธิการ) อยู่บนหน้าเพจทำให้ค้นหาได้ง่ายและรวดเร็ว ซึ่งเป็นสิ่งที่ Yahoo ยังไม่สามารถทำได้ นี่เป็นสิ่งที่ได้อธิบายไว้ในคำกล่าวครั้งแรกของกูเกิลว่า “ใส่ใจผู้ใช้งาน แล้วทุกอย่างจะตามมาเอง” ซึ่งพวกเข้าพูดถึงการเข้าไปใช้งานได้ง่าย และความเร็วในการโหลดหน้าเพจเป็นจุดสำคัญ Google delivered search result people really wanted กูเกิลได้จัดหาผลลัพธ์ตามที่ผู้คนต้องการค้นหาจริงๆ ทำให้เกิดความเชื่อถือตามที่กูเกิลได้สัญญาว่าจะไม่ขายพื้นที่ในการค้นหาข้อมูลให้กับเหล่าโฆษณา และหันมาใส่ใจกับการค้นหาเพื่อนำส่งข้อมูลที่ผู้ใช้งานต้องการค้นหาจริงๆ ในขณะเดียวกันพวกลิ้งค์สปอนเซอร์ต่างๆก็ถูกเชื่อมโยงกับการค้นหาคำ keywords เพื่อที่เวลาผู้ใช้งานค้นหา จะได้รู้สึกว่าลิ้งค์สปอนเซอร์เหล่านี้ดูมีประโยชน์ หรืออย่างน้อยที่สุดผู้ใช้งานก็รู้สึกว่าถูกลิ้งค์สปอนเซอร์เหล่านี้ก้าวก่าย เหมือนกับพวกโฆษณา banner ต่างๆที่มาก้าวก่าย โดยลิ้งค์สปอนเซอร์จะ...
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...MICROSOFT AND THE INTERNET: HOW TO RESPOND TO THE RISE OF GOOGLE? Microsoft started investing in the market for internet search and internet advertising in 2003. Despite some interesting technological and marketing moves, however, the company was still a distant third to Google 5 years later and was losing money. In the early 2009, Microsoft’s executives were wondering which bold strategic moves could be made to change this situation. How the Microsoft adventure began At the end of 2008, Microsoft, founded by Bill Gates in 1975, was a giant with revenues of $60 billion and operating cash flow of $22 billion. A large part of Microsoft’s success had come from operating systems for personal computers. Operating systems were the core software that coordinated a computer’s activities. In the early 1980s, Microsoft was chosen by IBM to develop the MS-DOS and to tailor it to IBM needs. Bill Gates, who believed that many other companies might also adopt the same system, sold IBM the rights to use the software for $80,000 but insisted that Microsoft kept the copyrights on MS-DOS. This worked beyond expectations as the many competitors -for instance, Compaq or Dell- who imitated the IBM PC adopted MS-DOS as well, paying Microsoft licence fees of $15 per machine. By the early 1990s, Microsoft had over 90% of the operating system business, Apple gathering most of the rest. Armies of developers were also developing hundreds of software applications that ran on MS-DOS. Microsoft’s dominance...
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...When we talk about marketing in today’s society, it is no longer about billboard signs or 30 second radios spots. To reach the larger audience you need to market where people or going and the internet is where you can get your bang for the buck. When marketing on the internet you want to get your ads where people are on the internet. Google and Yahoo have one of the highest hit rates on the internet and for any business or corporation looking for exposure those two sites are the place to be. Both of these are exceptional websites to starting your marketing campaign. Both have pros and cons that will meet everyone’s needs. How you choose what is best for you is a personal decision but in the end you should meet your marketing goals. First I will tell you a little about both of these services that are provided by Yahoo and Google. Yahoo is a suite of several online marketing tools, including sponsored search, local advertising, and the Yahoo. I will give a brief detail of similarities and differences between the pricing schemes of both Google and Yahoo. First, let’s start off with the similarities between the two. They both offer what they call PPC “Pay Per Click” service which is an advertising program that involves a payment to the host each time a visitor clicks on a link that leads it to a vendor site. Pay Per Click programs, PPC or Pay For Performance are terrific ways to extend your business reach beyond your city and even state. The growth in web traffic generated...
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...2012 MICROSOFT’S SEARCH SUMMARY * In September 2008 the executives at Microsoft looked at alternatives to improve the company’s position. * The company got serious about search five years back, made great progress, but still lacks behind Google. The division leader is looking for a new ‘game changer’ move which helps then catch and pass Google. Microsoft in 2008: * Since its origin, Microsoft has grown to sell a complex line of software, services, and hardware. * The historical heart of the company was its line of operating systems for PCs, which was introduced in 1980. IBM had come to Bill Gates looking for someone to build a PC operating system. Gates purchased an OS and modified it to meet IBM’s needs, and named it MS-DOS. Rights to use this system were sold to IBM. * During the 1980’s this system dominated a rapidly growing market for PCs. * By 1990, clone makers (Compaq, Dell, etc.) were licensing MS-DOS for $15 per PC. Microsoft’s OS ran 90% of the worlds PCs, while Apple had a 7% share. * Apple launched Macintosh in 1984, and Microsoft introduced Windows 1.0. In 1990 Windows 3.0 was introduced, then Windows 95, 98, XP and finally Vista in 2007. * Development costs rose from $500 million for Windows 95 to $10 billon for Windows Vista. By mid 2000’s, Microsoft sold 95% of all OS, while Apple had a share of 3%. Application Software: * 1980’s: Microsoft entered the business of making application software. * 1983-84: They released...
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...that come to mind first have to be Microsoft, Google, and Yahoo. Two years ago they ranked as the most visited sites in the world. Google was number one with 147 million visits a month. Facebook was second with 132 million, and Yahoo was close behind with 130 million. The Search industry is a true conundrum in and of itself because of the dynamic among that top three I spoke of. Google, Yahoo, and Microsoft are each other’s competition, but at one point or another they have actually worked together. Granted the only reason for this was for individual benefit, NOT for brotherhood or solidarity. Even so, that is still pretty much unheard of on any other industry. Early on in Google’s infancy, Yahoo actually was a customer of its search engines. Of course when Yahoo broke away from them, there was some legal wrangling over patents, and Microsoft actually tried to actually takeover Yahoo some years ago. Well, eventually Yahoo reached an agreement with Google to host their search ads. This alliance gained Yahoo nearly one billion dollars in revenue. But, like every time any of these companies try to play nice it failed again. Google pulled out after receiving a warning from the U.S. Justice Department that their partnership could possibly violate antitrust statutes. Essentially, over the course of their existence Google and Microsoft have been showing growth while Yahoo has struggled. Without Google and Microsoft helping Yahoo probably would not still be around. ...
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...substitutes are the five largest forces that impact the search industry. A rival firm is a strong force in the search industry. Google Inc, Microsoft Corporation and Yahoo! Are all competing for market share in the search industry in the United States and across the world? The fact that these three companies search engines are relatively the same to most users, it is hard to consumers to see the difference between them and it forces the companies to find various ways to distinguish themselves from each other. Microsoft’s Bing has tried to distinguish itself from Google by using an algorithm that looks at the context of the words in a search instead of just the words themselves. Microsoft Corporation has also launched a very strong advertising campaign to demonstrate the difference between Bing and Google search. Yahoo! Has recently adapted Bing as its default search engine but is competing with Microsoft’s MSN and Google for number of viewers and advertising income. The competitive force of new entrants is moderate to weak in the search industry. Google and Bing have such a large market share that it is difficult for new entrants to gain market share and make a large dent in these companies market share. Bing was the last new entrant to affect Google’s search dominance and they entered the market in June 2009. Microsoft had previously already had a search engine under the name Live...
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...GBA 490 4/7/2010 Case Report Table of Contents Executive Summary 3 Situation Analysis 4 Recommendations 6 Appendix 11 SWOT Analysis 12 Key Success Factors 13 Driving Forces 14 Increasing Globalization 14 Marketing Innovation 14 Diffusion of technical know-how across more companies and more countries 14 Dominant Economic Features 15 Market size and growth: 15 Number of rivals: 15 Number of buyers: 15 5 Competitive Forces 16 Competitive Landscape 17 Financial Analysis 18 Identification of Rivals 19 Percent of Searches 19 Financial Summary from 2007 19 Financial Summary from 2009 19 Yahoo 20 Microsoft Online Services 21 Analysis of Company Strategy 22 Executive Summary To: Eric Schmidt, CEO From: Tyler Echevarria, Amanda Osburne, & Samantha Smith Re: Strategic Analysis of Google Inc. Date: April 7, 2010 This report will make recommendations for improvement of Google Inc. based on the analysis of the company’s financial resources and industry evaluations. Several analytical tools will be used in determining the direction the company should pursue. These analytical tools and techniques include the following: * Evaluation based on SWOT analysis * Evaluation based on Key Success Factors * Evaluation of Google’s business model and strategy * Analysis of financial data * Evaluation of current industry conditions These tools will be used to recommend new opportunities for Google to pursue as they...
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...Strategic Analysis 1) ROLE OF GOOGLE IN THE GROWTH OF E-COMMEERCE: With the incredible growth of the eCommerce industry, experts around the world are expecting significant change in the future, and companies are taking stock in the market by investing more money than ever before in eCommerce technology. Google Shopping and recent changes to Google Analytics are also affecting retailers and their ability to effectively market their products and services. Google has introduced a new change that will “phase out free clicks on Google Product Search listings.” Once the new program called Google Shopping launches, ecommerce merchants will be required to bid on placement for their products for related search terms in Google. Online retailers will no longer see their listings appear in the comparison shopping service. Instead, this service will be replaced with the Google Shopping program, which will include paid product ad listings. According to Sameer Samat, Google Shopping’s Vice President of Product Management, “Google Shopping will empower businesses of all sizes to compete effectively, and it will help shoppers turn their intentions into actions lightning fast. Today’s changes are a first step toward providing technology, tools, and traffic to help power the retail ecosystem.” Google + has rolled out a new service that will now include local listings and customer reviews. Globally, eCommerce is up by more than 300% in the Middle East, with approximately 70% of transactions completed...
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...Market performance…………………………………………………………..………4 3.3 Yahoo…………………………………………………………………………………5 3.4 Market performance………………………………………………………………..…5 4.0 Financial ratios………………………………………………………………………………..6 5.0 Interpretation of ratios…………………………………………………………………….….7 5.1 Profitability ratio………………………………………………………………...……7 5.1.1 Return on asset…………………………………………………………...…7 5.1.2 Return on equity…………………………………………………………....7 5.2 Efficiency ratio…………………………………………………………………….....8 5.2.1 Gross profit margin………………………………………………………….8 5.2.2 Net profit margin…………………………………………………………….8 5.3 Liquidity ratio…………………………………………………………………………9 5.3.1 Current ratio…………………………………………………………………9 5.3.2 Quick ratio…………………………………………………………………10 5.4 Leverage ratio………………………………………………………………………..10 5.4.1 Debt to equity ratio………………………………………………………...10 5.4.2 Debt ratio………………………………………………………………..…11 5.5 Investment ratio……………………………………………………………………...11 5.5.1 Price/earnings ratio………………………………………………………...11 5.5.2 Price/book value ratio……………………………………………………...12 6.0 Cash flow statement analysis………………………………………………………………...13 6.1 Cash flow data for both companies………………………………………………….13 6.2 Cash flow for Google……………………………………………………………….13 6.3 Cash flow for Yahoo…………………………………………………………..……14 7.0 Conclusion………………………………………………………………………………...
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...Trading Data 52-Wk Range Market Cap. Shares Out. Dividend Yield Avg Daily Vol. Float Yahoo! Corp. $18.58 - $34.08 $25,459 MM 1,336.4 MM 0.0% 27,140,000 NA Source: FactSet It’s not often that management of a company sees its stock skyrocket ~50% in one day and have to ask themselves “Is this the best day in company history or the worst?” We believe Yahoo!'s valuation has being hampered by near-term investment concerns which weighed on investor realization of the long-term potential and value of the company. As we pointed out in our 4Q earnings note, we thought the near-term investor disappointment created an opportunity for any suitor that was remotely serious. Fundamental Data EV/EBITDA Enterprise Value LT Debt to Total Cap. Book Value 16.4x $24,681.6 MM 0.0% $7.00 • Implications to Traffic and Search Market Share. Domestically, Yahoo! and MSN together command 11% in page views market share, more than double Google’s 5% market share. In the international market, however, Yahoo! and MSN jointly account for 8% of total page views, still slightly lower than Google at 9%. On Search, the combination of Yahoo! and MSN would represent 33% of query market share in the domestic market and 17% in the international markets, still significantly behind Google at 58% in the U.S. and 70% internationally. • Implications to Advertising Market Share. Yahoo! and MSN together add up to $5.3B in 2007 domestic ad revenues, assuming no synergies,...
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...’s new iPhones that feature a new touch technology are a hit with consumers, a handful of component suppliers across Asia and the U.S. stand to be significant beneficiaries. The Cupertino, Calif., company on Wednesday unveiled a pair of new iPhones with “3-D Touch” technology, which can distinguish between a light tap and a heavier press, allowing users to control a device differently depending on how hard they push on a surface. Apple is the first company to feature the technology, in its smartwatches and MacBook computers. Boeing, Lockheed Differ on Whether to Sell Rocket Joint Venture A $2 billion bid for the Pentagon’s primary rocket maker is running into complications, partly because Boeing Co. and Lockheed MartinCorp. differ on whether to sell their equal stakes in the joint venture, according to people familiar with the details. Aerojet Rocketdyne Holdings Inc.’s bid for United Launch Alliance LLC, the joint venture, faces a situation in which Lockheed Martin’s executive suite seems more eager to negotiate a sale as part of a broader, companywide portfolio restructuring, these people said. On the other hand, Boeing’s leadership is more inclined to hang on to its stake, the people said. Emerging-Market Currencies: Things Look to Get Worse Investor bets that Brazil and...
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...Case Study GOOGLE in 2008 1. Why has the payperclick search business grow so rapidly? The reason have to start with Gross’ way thinking, as GoTo.com broke down in to two strategies to attract advertisers: First, they charge advertisers only when somebody clicked on a link and was directed to the website, this is the launching point of payperclick, which would make advertisers easier to evaluate their performance of the ads, rather than spending lots of money without knowing the real ROI. Second, the GoTo.com priced the keywords low ($0.01 per click), therefore attracting many audience to join the network, and being the affiliates. Once this efficient business model be used by more advertisers, it will definitely grow rapidly. 2. Analyze the competitive structure of the market for search based on advertising. What are the implications of this structure for the long run profitability of players in the market? The market for search based on advertising is profitable because it charges the advertisers, not the users. If the market makes profit by charging its users, the users may normally choose to use the search engine that charges the least, leading to a price war in the long run. Conversely, if the market makes profit by charging the advertisers, things will go differently. The advertisers are aimed at attracting more people to see their ads, as a result, they are willing to pay for their ads as long as the price is affordable. In addition, advert...
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...os t 9-806-105 REV: NOVEMBER 9, 2006 THOMAS R. EISENMANN rP KERRY HERMAN Google Inc. Google’s mission is to organize the world’s information and make it universally accessible and useful. — Google’s mission statement yo In December 2005, Google paid $1 billion for a 5% stake in Time Warner’s America Online (AOL) unit. The implied $20 billion valuation for AOL came as a surprise; JPMorgan had recently valued the unit at $13.7 billion.1 However, the partnership was important to Google, which had signed a fiveyear deal to continue providing web search results and search-based advertising to AOL, as it had done since 2002. Google was expected to earn about $600 million in gross advertising revenue from AOL searches in 2005.2 The share of ad revenue that Google would pay to AOL was not disclosed, but seemed likely to exceed the 85-90% estimated for the prior deal.3 No tC op In addition to its $1 billion equity investment, Google would provide a $300 million credit for ads on Google promoting Time Warner products and would showcase Time Warner content in a special box on some Google search results pages. Critics complained about reports that Google would provide Time Warner with information about its search algorithms in order to help its partner’s pages secure higher positions in search results. Commenting on Google’s accommodations to AOL, author John Battelle said: “Each of them represents a step closer to a slippery slope. What they...
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