Bill Gates is one person who believed that his innovations are certainly going to change the world for good and he is not only a technology innovator but also a good business man. With the bid for Yahoo makes it more evident in the present scenario. Many believe Microsoft’s bid for Yahoo is to put brakes on the smooth sailing of Google. Since Gates has decided to dedicate his time entirely for fighting global issues like poverty, Aids, Malaria and TB he would not be part of day to day business of Microsoft anymore. Analysts state that the bid for yahoo is a final effort to bring back Microsoft to the pole position in the internet space. As a matter of fact, when one looks into the company’s slew of innovations, yet to be unveiled, need a launch-pad with larger reach to derive expected financial returns. Hence, the bid of $44.6 billion makes business sense.
Excess cash in the kitty with an excellent quarterly performance by Microsoft further strengthen its action of throwing its muscle around. Yahoo has long been an interest of Microsoft since Yahoo started taking a U turn in profits. Google’s organic growth coupled with the decision of their founder members and the CEO, to stick together for 20 years had also prodded Microsoft to come out with concrete plans. Microsoft spokesman reiterated that the merger would not disturb the fabric of healthy competition. Although Microsoft is the dominant force in personal computer operating software, a tie-up with Yahoo could help it reposition itself amid a changing tech landscape with more applications moving online.
Microsoft did lose a lot of business to Google in the domains like emails, word processing and not to mention a large chunk to advertising revenues. Some argue it is an effort by Gates to make the final contribution to the firm that he would not be doing duties. Microsoft’s stronghold on the PC market is getting more and more vulnerable, and the market focus has shifted to mobile internet space. The bid cannot be construed as emotional one by Gates because he has not shown any interest in any product or services unless there is business opportunity in the past. Therefore, comparing this bid to any disastrous mergers or fears of triggering unhealthy competition in market is unfounded.