SearchEngineUpdate with Vanessa Zamora - 02-04-2008 Part I
Abstract: 1. Reaction to Microsoft Bid For Yahoo, 2. Yahoo Strikes Deal With Subscription Music Service Rhapsody
Vanessa Zamora
Video Content Producer, SearchEngineWorld
6:08 pm on Feb. 4, 2008 (utc 0)
Transcript
Monday February 4, 2008
Reaction to Microsoft Bid For Yahoo
Even the Giants Superbowl victory over the Patriots failed to overshadow the continued discussion surrounding the announcement Friday that Microsoft has bid to purchase Yahoo for $44.6 billion. After all, the transaction would ultimately pit Microsoft against Google in a battle of the two titans of the Web. Google’s reaction has centered around the importance of preserving Internet openness, choice and innovation. The concern points to Microsoft which has in the past sought to establish proprietary monopolies, similar to what Microsoft did with the PC, and what Google says could be done with the Internet should Microsoft succeed at overtaking Yahoo. Microsoft responded by saying the deal would "create a more competitive marketplace by establishing a compelling No. 2 competitor for Internet search and online advertising." Google’s Chief Executive Eric Schmidt is said to have called Yahoo CEO Jerry Yang to offer Yahoo help in any effort in response to Microsoft’s $44.6 billion bid. As AOL aims to shift into an online advertising company, the possible union of Yahoo and Microsoft, would eliminate two potential partners from the market as well as threaten the limited competitive standing that AOL holds. On the flip side, Google, which owns a 5% stake in AOL could decide to strengthen its ties with AOL with a possible acquisition. Though its not expected, the question that still remains is whether Google will counter with an offer to either purchase Yahoo, or in a more likely scenario, strike an advertising deal with Yahoo to thwart Microsoft’s bid. Despite what Google does next, should Yahoo choose to move beyond entertaining the offer from Microsoft, a hard look from European and U.S. antitrust enforcers and lawmakers is expected, possibly delaying a completed deal for six months or more. Ultimately an approval of the buyout is predicted by merger-law experts.
Yahoo Strikes Deal With Subscription Music Service Rhapsody
As Yahoo considers a takeover offer from Microsoft, users of its online music service will be migrated to Rhapsody, a former rival music subscription service, with whom Yahoo has cut a deal. Yahoo Music Unlimited, which was started nearly three years ago and which charges subscribers $8.99 a month to listen to an unlimited amount of music will discontinue its music service. Music subscription services have generally not met with much success, largely because of technical restrictions that complicate listening to songs independently of personal computers; And even though subscription services allow songs to be downloaded to a variety of portable devices with a current paid subscription, the services are not compatible with the popular Apple iPod. Yahoo executives said the company intends to pursue a more "open" music strategy, with the partnership allowing Yahoo to intensify its focus on free, ad-supported music and other media offerings.
6:08 pm on Feb. 4, 2008 (utc 0)