Microsoft Yahoo! Duo Challenges Google

All the news that I come across these days are hell bent on unraveling the threads of mystery behind the Microsoft’s so called “unsolicited bid” for Yahoo! Even I would like to know the ulterior motive behind the takeover.

Let me guess the reason behind this curiosity. When 2 of the major giants in internet advertising market plan to get together, there are bound to be some major changes in the equation.

This lucrative online industry is currently worth $40 billion and is expected to grow to $80 billion within three years. The undisputed king of this segment is none other than Google. But now, its supremacy is being threatened by the duo.

If you look at the statistics, Yahoo! shares lost around 30 percent of their value in the year gone by. Google shares on the other hand have gained, despite reporting low fourth-quarter earnings.

Yahoo! had announced earlier this week, to lay off employees by mid-February, quoting what CEO Jerry Yang described as "headwinds" facing the company.

I believe that if this deal goes through, this somnambulant giant may get a new lease of life. This lethal combination is no doubt posing an imminent threat to Google. Its irrefutable stint at the top is in jeopardy. And so it is crying foul.

I will keep you posted on the latest from these 3 camps as and when something new comes up.