It was reported by New York Post that Microsoft is now on talk to acquire Yahoo! for $50 Billion.

While Microsoft and Yahoo! have held informal deal talks over the years, sources say the latest approach signals an urgency on Microsoft’s part that has up until now been lacking.

The new approach follows an offer Microsoft made to acquire Yahoo! a few months ago, sources said. But Yahoo! spurned the advances of the Redmond, Wash.-based software giant. Wall Street sources put a roughly $50 billion price tag on Yahoo!.

Many critics are saying that this is a desperate move of Microsoft after it’s failure to acquire DoubleClick which Om considered it as a bad idea.

But just wondering if Microsoft-Yahoo! (Microhoo!) merger really is the right one to compete against Google… If so, then I was right to think that Yahoo! and Microsoft is too far compared to Google. And if it really happens, then it’s a clear point that Yahoo! is not really the competitor of Google but Microsoft. In other way, it also tells us that Microsoft admits its failure in the internet (search, ads and other business).

However, John Chow got the point why Microsoft is right to buy Yahoo!.

Yahoo! has been performing poorly, it’s management has been shaken up and the share price has been under performing. Microsoft needs to step its game if it wants to compete against Google on the search engine front.

TechDirt’s point might be true also:

But even if the companies do a deal, it’s hard to see how that would solve either of their problems, since it ultimately comes down to products and consumer value, which is at the core of Google’s success.

So, all of this is all about competing against Google. I am wondering what will be the reaction of Google about this.

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