Microsoft Makes Offer for Yahoo!
Friday, February 1st, 2008
Microsoft offers to buy search giant.
Microsoft Corporation (NADSAQ: MSFT) has made an offer to by search company Yahoo! (NASDAQ: YHOO) for $31 per share, a premium of about 60% over yesterday’s closing price.
If this $44B offer is accepted and approved by regulators, it could have a big impact on the domain name industry. Yahoo provides advertising feeds to a number of domain parking companies, including Parked.com and ParkingDots. Frank Schilling parks his domains with a Yahoo feed as well.
So far, Microsoft has not made serious inroads into domain parking programs, but is starting to roll out advertising feeds similar to Google Adsense.
Microsoft’s pay-per-click service is relatively new and has lower bid prices and higher conversion rates than the two big PPC providers (Google and Yahoo). A combination of the two could drive up bid prices. This could be good for domain parking and bad for advertisers. On the other hand, domain parking companies would now have to deal with Microsoft…a scary proposition for some.