The War for the Web

Microsoft was smart to walk away (for now) from its $44 billion bid for Yahoo. It’s never good to overpay. But the software giant–whose stock has flat-lined for eight years–was on to the right strategy in looking to the Web for growth. Can’t Microsoft build something on its own? Why the rush to pay billions for Yahoo? The simple (and wrong) answer was that adding Yahoo’s 20% Web search market share to Microsoft’s 10% meant that it could compete against Google’s 60% share. Technology changes too fast for that to make sense except on paper.
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