Microsoft + Yahoo = Microhoo or MicroWho?

Last updated on Feb 1, 2008

Posted on Feb 1, 2008

Today, Microsoft announced a bid for Yahoo of ~ USD 45 billion.  These are indeed bad days for Yahoo as it is laying off 1000 employees and its stock is falling down.  Well, the record of blunders by Microsoft in the Internet world has been so terrible that it is difficult to see how this acquisition will benefit anyone.

Google continues to be strong (despite a little setback) and Microsoft just cannot get anything right!  The best course for MSFT after buying Yahoo would be to stop its own services and put everyone behind Yahoo.  That may be one way to benefit.

Unfortunately, Yahoo was also one of the stocks which I was Dollar Cost Averaging!  And my philosophy of DCA has been that

to choose a stock which will be in existence for 10 years.  Well, there were two – YHOO and XOM.  XOM became the company with the highest profit ever by any American company!

Well, on the bright side, at least the stock price of Yahoo will rise.  I plan to sell it off and invest in some other stock.  I think the days of Yahoo and MSFT will not last very long.

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