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What's Microsoft's Move After Yahoo's Rebuff?

Now that Microsoft Corp. has walked away from its takeover bid for Yahoo Inc., the tech world is turning its focus on the Redmond, Wash. giant's next move. And for some analysts, Microsoft may still be in good shape to cut into Google's online search and advertising stranglehold without Yahoo's help.

Three months ago, Microsoft expressed its desire to stay relevant in the online market with its US $44.6 billion bid for the Web's second biggest search engine. Microsoft sits a distant third to Google Inc. in online search and also lags behind the Mountain View, Calif.-based search empire in attracting advertisers for paid search ads. But with the Yahoo sweepstakes now over (at least for now), some analysts are saying that if Microsoft can refocus on its own online efforts, it can challenge for online supremacy.

Playing to Strengths

"The problem with going after only a search business is you're fighting Google's game," Charlene Li, vice-president and principal analyst at Forrester Research Inc., said. "What Microsoft needs to do is redefine the game."

Full article: pcworld.com Posted by Picasa

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What's Microsoft's Move After Yahoo's Rebuff? - Saturday, May 10, 2008 -

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