NEWS: Microsoft Wants Yahoo

See AdEcon scorecard, below.

Microsoft made a $44.6 billion bid on Friday for Yahoo, the popular search engine based in Sunnyvale, Calif. Yahoo’s rival, Google, has been working behind the scenes to stop the deal.

Eyes on Google, Microsoft Bids $44 Billion for Yahoo, New York Times, Feb 2, 2008

Google Works to Torpedo Microsoft Bid for Yahoo , New York Times, Feb 4, 2008

Blogs, ZDnet

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AdEcon Scorecard

IChannel (Internet channel)

• News: Yahoo news + MSN news = C. Still fragmented among hundreds of credible sources.
• Search: B. Google has 58%.
• Mail: Hotmail + Yahoo mail = A++. Global majority share.
• IM: A++. Global majority share.
• Social Network: Spaces + 360 = C. Myspace, Facebook, and others dominate.
• Photos: FlickR = B. Good foothold.
• Video: Silverlight + Yahoo Video = C. Youtube, Adobe, Apple dominate.

AdNet (advertising network)

• CPC: adCenter + YPN/Overture = C. Adsense wins. Fragmenting with new AdNets.
• CPM: adCenter + YPN = B. Consolidating access to marcom. Still fragmented.

MaSP (marcom service provider)

• Ad serving: Microsoft server. No change.
• Rich media: Dependence on partners. No Change.
• Targeting: aQuantitative + Blue Lithium = Unproven.

Bottom Line

Combines two IChannel giants, but not much progress as an AdNet or MaSP. Thus, the acquisition is arithmetic growth, not multiplicative.

Your opinions?