Microsoft, Yahoo merger: the future success of the move.

<P> Enormous amount of money to start the acquisition, usually only two explanations, one is very optimistic about the prospects for buyers for the acquisition, and second, after the Great Depression survivors want to take the opportunity to pick up some cheap points. .However, with Google latest earnings report public, but indicates that the acquisition of another big picture: Web2.0 era of the arrival of the first recession </ P> <P> Daniel Gros "Slate" columnist < ./ P> <P> the beginning of the Lunar New Year, the Internet played the two areas of mergers and acquisitions show. .Amazon (Amazon) has just announced 300 million U.S. dollars acquisition of audio book seller Audible, Microsoft (Microsoft) to 44.6 billion U.S. dollars, plans to acquire Yahoo (Yahoo). .Expand money in the acquisition, usually only two explanations, one is very optimistic about the prospects for buyers for the acquisition, and second, after the Great Depression survivors want to take the opportunity to pick up some cheap points. .However, with Google latest earnings report public, but indicates that the acquisition of another big picture: Web2.0 era of the first arrival of a recession. .</ P> <P> in the ditch with a recession after a few quarters, even the great advantage of the technology companies have had to the so-called business cycle (businesscycle) compromise. .Economic recession reduced the company's marginal revenue, the executive head of each company struggled to cover up the trend of growth and stock decline. .Nasdaq (Nasdaq) hot young dark horse who had to cut costs, go hand in hand tide over the crisis. .</ P> <P> as a new media company, Audible is one of many old media companies are flocking objects. .Company founder and CEO Donald Katz (DonaldKatz) itself is an outstanding journalist, compared to those who like their company to provide a lengthy press the space to display their talent. .Through the network in 2000, after the crisis, Audible unknowingly made significant development (mid-2007 revenues expected to have more than one hundred million U.S. dollars). .Recently released third quarter results, 30% annual revenue growth not enough to offset its technology, marketing and operation aspects of the investment. .It is concluded that: Audible still loss for. .</ P> <P> log the Amazon site, greeted the brilliant performance but still can not make it out of embarrassment as a retailer. .With the new business cycle approaches, retail growth can only continue to the expense of profits. .Amazon recently released in the fourth quarter of last year's earnings report, compared with last year sales rose 42 percent, 56.7 billion U.S. dollars, while its operating income increased by only 38%, operating margin has dropped .to the middle level of the North American market. .(The explanation is: the Amazon have to take the way of discount or package shipped to drive sales.) </ P> <P> For 2008, Amazon's growth rate will remain at 26% to 33% .between. .Insiders pointed out that even though sales growth may affect the Amazon massive infrastructure investment and distribution capabilities could also help Audible profit, but is an Audible can not pay big bucks in exchange for cash cow. .Amazon price of $ 11.50 per share for the acquisition, more than Audible's stock on Jan. 30 closing price of $ 9.33 higher than 23% below last year's average price has to. .</ P> <P> However, the economic downturn has forced businesses cut advertising spending, which is simply for the media companies, even worse. .Although online advertising is still showing a good momentum of growth, but from the overall advertising budget cuts still will have significant impact on the overall market. .Online advertising and e-commerce bleak prospects, and rivals the continuing challenge of Google, Yahoo seems to be behind Microsoft's acquisition of the reason. .</ P> <P> with Microsoft, Yahoo, the two companies are now in the field of competition in the network struggled. .Yahoo announced in the fourth quarter of last year's report shows that compared to the previous year, its annual revenue grew only 8 percent, operating income decreased by 38%. .Even the brilliant performance of Microsoft, in its quarterly report also can not deny there is a black point, that is part of the network, not only does not increase, but a loss. .As of December 2007, within six months, up 236 million U.S. dollars by the loss of to 5.1 billion U.S. dollars. .</ P> <P> the face of such a strong competitor Google, the overall market growth is insufficient to meet the development needs of all businesses. .Microsoft has spent billions of dollars to compete with Google, Yahoo shares fell more than 10%, but added to the Microsoft acquisition of Yahoo, provided an opportunity. .Yahoo said to be time to evaluate Microsoft's bid (U.S. Department of Justice seems to feel the same way), but since the cost was shared, the future of Microsoft and Yahoo should be a good development momentum. .</ P> <P> Google is gradually revealed through her mind. .The fourth quarter of last year's report shows, compared with last year, its annual revenue growth of 50 percent, but with its third quarter results compared to, but it is decreased. .Yahoo Microsoft M & A news was announced, its shares fell sharply, with the November 2007 compared to the maximum price fell by 30%. .World Brand Laboratory http://brand./ </ P> <P> some ways, Audible and Amazon's friendly merger, Microsoft is generous for Yahoo and Google M & A quarterly report unsatisfactory, you can see .as is the inevitable recession performance. .Investors are worried about is, the original good profit growth and is Web2.0 company, will eventually escape the so-called business cycle. .Over the past few years, dragged down to the slow growth in consumption in many areas, from the construction sector has been to the retail industry. .Now seems to turn a technology company. .During a conference call at Google, its chief executive EricSchmidt said: "For the upcoming recession, we have not seen any negative impact." In this regard, we can say is he wrong place. .</ P> </ p>.