Two BIG news in the morning today. The first one is reported by New York Post early this morning. Microsoft (MSFT) is discussing with Yahoo (YHOO) regarding a friendly buyout deal.
"Reports that Microsoft Corp. has started talks aimed at acquiring Yahoo Inc. gave a lift to the tech sector and sent Yahoo shares soaring as much as 16% in early trading. The New York Post first reported that Microsoft was interested in acquiring Yahoo in a deal that could be worth as much as $50 billion. Any such merger would be aimed at thwarting the rise of Google Inc. as the preeminent online powerhouse. See full story. Yahoo shares remained up by $4.50, at $32.68, while Microsoft fell 56 cents a share, or almost 2%, to $30.40. With Yahoo and Microsoft leading the sector's action, the tech-heavy Nasdaq Composite Index rose almost 7 points to 2,572. The Philadelphia Semiconductor Index and the Morgan Stanley High Tech 35 Index also advanced."
$50 billion??? No kidding. In fact, Yahoo is losing ground with Google in the past few quarter. While Google reports it makes a big amount of money this quarter, Yahoo is falling by the rate of 11% per quarter. However, Yahoo presents a symbol of the first dot com wave in the late 90's. If the deal can go through, there is really not much dot com 1.0 company left in the market (although there is really not much left already).
The second big news is about Yahoo again. Yahoo is dropping it's photo sharing site Yahoo Photo. Reported by TechCrunch, Yahoo is switching to it's other flagship photo sharing site Flickr. I think it's really a logical move. However, Yahoo wasted a lot of money to rebuild it's Yahoo Photo into AJAX about a year ago by copying some of the Flickr features. Yahoo is really screwing up in the recent years and they really don't know what they are doing (the other "they really don't know what they are doing company is Sony).
Oh well... what a Friday in tech industry.