Microsoft saving Face(book)

Is microsoft about to revive the rumours and constant wondering about Facebook buyouts?  After every billionaire tycoon and his dog were linked with buying the social media phenomenon it has all been quiet for a while.  Now apparently it has come out that Microsoft has put the feelers out about a purchase of the social network.  Full article from search engine watch below:

About Face(book): Microsoft Feels Out Social Network Acquisition

Though Bill Gates was out there telling people Microsoft is not interested in making non-Yahoo acquisitions right now (at least in the search/social world), word comes that Microsoft bankers have sent “feelers” to Facebook about a full acquisition.

Here’s why this is a solid move:

1. Microsoft already owns 1.6% stake in Facebook, worth $240 million
2. Microsoft formed a data portability partnership with Facebook and 4 other networks
3. At least two Google execs have jumped ship to Facebook in recent months

While Facebook has yet to “overtake” MySpace in the social media market, it is a viable competitor. And I’m sure Ballmer would love for Microsoft to own a social network that even Apple has used as a marketing ploy as of late. Recent commercials for the iPhone entice potential customers through the ability to access Facebook on the popular mobile device.

Additionally, internet users are turning to their social networks during their search process. Consumers want answers and reviews and social networks help them get opinions from trusted sources.

The Facebook move would likely be seen by many as a better fit than Yahoo. But expect just as many to see it as a negotiating ploy in their bid for Yahoo. Though Microsoft has officially withdrawn its bid for Yahoo, many analysts expect Ballmer and the team to return to the table for another stab at a grab for the search engine.

Yahoo! acquires Indextools - the death of a gem?

Slightly old news as it was announced 14 days ago but Ive been a little busy so am finally getting round to posting about it.

Yahoo! has purchased web analytics software solution Indextools for an undisclosed fee.  The tool which one commentator described as”one of the best kept secrets in the industry” has been bought as a direct response to Google Analytics, this is easily shown by the fact that the first thing Yahoo! have done, is make it free! (remind you of any other analytics package?).  Yahoo! has had its own tracking solution for a while but lets face it, it was pretty rubbish.  So this purchase and the immediate action of making it free of charge puts Yahoo! firmly in competition with Google in the combined search, analytics market it in my eyes, gives them an advantage.  I have used Indextools for a number of years and can honestly say it is 100x the package that Google analytics is.  This is a full on, analytics, campaign management, usability, all singing, all dancing tool, which when used correctly can do some pretty impressive things.  Realistically most people wont use all the best bits of Indextools but the savvy internet marketeer could actually get for free with Indextools, what would have cost them £500-£1000 a month in the past, bargain!

I am intrigued as to what Yahoo!’s plans are for Indextools as if they are to continue to offer it for free then are they going to remove some functionality to strip down the software functionality?  I hope not but it probably makes more business sense.  Maybe then offer the additional functionality at a cost, but does that go against what Yahoo! are trying to achieve?

In order to qualify for the package at no cost existing customers are required to sign a new Yahoo! agreement.  I haven’t seen this agreement yet but it will be an interesting read (if such documents can actually be interesting!) as one of the concerns around using Google analytics, and now Yahoo! owned Indextools is the data you are passing to the search engines about your campaigns.  Who owns this information and how can it be used is key in determining whether by selling out to Yahoo! Indextools is likely to lose all its clients.  It may seem a little big brotheresq but would you really want Yahoo! knowing the details of all your online activity?  not just search (and therefore Google) but also you display, affiliate and email campaigns?  because that is what Indextools is best at, compiling data into a logical dashboard enabling you to see all your data in one place.  If Yahoo! is then going to use this data to make competitive decisions then nobody is likely to want to use Indextools anymore.  I suppose we will just have to wait to see the contents of this agreement and its approach to data usage, but I just hope by buying one of the best, most usable tools on the market, Yahoo! hasn’t inadvertently killed it.

Breaking News - Google completes doubleclick deal

Brekaing news from nma.co.uk! 

Google has completed its acquisition of ad-serving company DoubleClick, following the green light from the EU.At a reported £1.6bn ($3.1bn), the cash deal is Google’s biggest acquisition to date.

Eric Schmidt, Google’s Chairman and CEO, said today in a statement that the company was ‘thrilled’.

He added, “Google now has the leading display ad platform, which will enable us to rapidly bring to market advances in technology and infrastructure that will dramatically improve the effectiveness, measurability and performance of digital media.”

Microsoft won’t take no for an answer!

It looks like Microsoft might be refusing to take no for an answer in their bid to buy out Yahoo! in a bid worth $40Bn.  After having their bid rejecting because the Yahoo! board believed it significantly undervalued their brand and investment in technology Microsoft are rumoured to be responding by attempting to ignite a proxy fight to take over the company.  Such a proxy fight would see Microsoft nominate a group of directors sympathetic to a deal for shareholders to vote on at Yahoo’s annual meeting.   According to Morningstar this is Microsoft using the carrot and the stick approach, just both at the same time! The carrot of the share price, 62% above trading price, and the stick which comes in the form of the threat of a proxy battle.  The drama continues and maybe Microsoft will get their way after all!

Yahoo! rejects Microsoft bid

Yahoo!’s board have unanimously voted to reject Microsoft’s astronomical bid of $44.6bn (£22.4bn) claiming the offer significantly underalued the company! Rich considering the offer was 61% up on their closing share price from the previous day.  Yahoo!’s explanation is that the bid undervalued the strength of the Yahoo! brand, user base and recenty investment in advertising technology.  My take is that they arent too keen on becoming a Microsoft company and having a consolidated position in the market as they already have a larger share of the lucrative search marketplace and a comparitive stance in other areas of online as well.  I wonder whether this will open the door for a bid from Google as had been rumoured last week or whether Yahoo! would rather continue the fight on their own against the big G.  This probably wont be the last we hear about alliances and a consolidating market but Im not sure any future deals will be on the same scale.

NMA article here

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