Microsoft has put a proposal of 44.2 billion dollars to buy yahoo. Should it buy Yahoo? How will it impact the market? My perspective is the merger will be 21st century Time Warner, AOL take over. It will be an altra failure. MSFT and Yahoo have little in common other than rivalary with Google. Investors have reacted negatively to the bid by MSFT and shares have goe down. Yahoo has not responded positively yet. If everything goes well, then antitrust might come in the way of MSFT-Yahoo merger.
Cash rich MSFT will take debt to buy Yahoo. It needs to sort out burocratic issues such as merger, removing the duplicate work, anti trust et al. By the time it will be ready to compete with Google, Google will be a few step ahead than MSFT-Yahoo combined.
So I am skeptical if the merger will ever succeed.
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