We’re going to go out on a limb here and assume that Microsoft division president Kevin Johnson is not a moron. So we are also going to assume that, when Johnson said yesterday that Microsoft plans to grow its search share from 10% to 30% and its online ad share from 6%, he could not possibly be imagining that Microsoft could do this on its own.
So that set us thinking: How could Microsoft actually achieve those goals?
Answer? (And there’s only one). Buy Yahoo.
Buying Yahoo would give Microsoft 30% search share instantly. It would also boost Microsoft’s ad share close to that 40% goal.
We continue to think that a Microsoft acquisition of Yahoo would be disastrous for Yahoo (not to mention creating an annoying one-time tax hit for us long-term Yahoo shareholders). But what such an acquisition would do to Yahoo is irrelevant. If Microsoft comes in with a Murdoch-like offer, Yahoo won’t be able to refuse.
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