Race for Yahoo!!

What can 44.6Billion USD could mean? Well, for Microsoft it can mean the cost of survival.

But this bid for Yahoo, make one wonder, Why don't Microsoft buy some new companies in place of dying Yahoo? Would 44.6$ not enough to create a parallel and better Yahoo? Will the much needed integration even possible? Will Microsoft play by rules if it gets Yahoo? Many more such questions would get answered in next, weeks to months as the Microsoft's Yahoo bid plays out. But the most important question of all, would take much longer to be answered. Will Microsoft be able to turn the table on Google or will it get tangled into the web its trying to spin? Irrespective of the outcome, one thing is clear that Microsoft, is ready to take the bull by it horn.

Currently Microsoft has 3 major problems going against it
1) Battle with Google - Gateway to the Internet.
2) Gorilla-war with Apple - Next generation devices & better software integration
3) Skirmishes with Linux - Developed by best brain and at almost no cost.

Probably this is one of the most difficult times Microsoft had seen. All the 3 combined together where eating Microsoft from 3 different direction and could have put Microsoft money machine out of gas. But, a successful bid for Yahoo alone can turn the tide in favor of Microsoft.

Given all the troubles Microsoft has, it has 3 things going for it.
1) Huge cash reserve - An arsenal, giving upper hand in almost all battle conditions
2) Bumper Profit for next few years - Effective firepower against all kind of war games.
3) Time/situation - Market for current product, and above all monopoly of Google and dismal state of Yahoo. (Almost) taking out regulators & Google indirectly out of the equitation while limiting options for Yahoo.

Current offer for Yahoo, bring out the point that Microsoft is getting ready for the direct and decisive battle against Google. Microsoft now appears to understand the rules of engagement much better than previously assumed by may including Yahoo/Google/Apple/Linux and share-holders/Investors of various companies. Yahoo's pathetic display and lack of ability to capitalize of opportunity has given Microsoft chance of a life time. This bid will allow Microsoft a platform and big & critical internet presence which it lacked till date to take on the heavyweight-n-worth opponent.

With Windows-Vesta out & generating enough cash for Microsoft to go about doing regular business. Decision of taking on provocative Apple or multi-brain-super-cheap Linux would have been costly and a zero sum game. A big 44.6B-$ bid clearly shows that Microsoft also see the paradigm shift in computing as well as other see it. And that it understands the shift towards cloud computing is much more real than anything else. Microsoft management should get full credit for identifying real and avoiding needless battle and also of taking a bold decision.

Microsoft, appears to be asking the right question & getting correct answers for now. The bid decision bring out the fact that Microsoft is ready for do or die battle. If Microsoft bid for Yahoo goes through, it will drive out most of Microsoft's cash but than probably is worth buying Microsoft a fighting chance instead letting it die a slow death. And with Microsoft(+Yahoo) and Google face to face, the final showdown promises to bring out faster technological development & probably better returns to respective share holder.

So let us all say, "Microsoft race for Yahoo!!!"