One of the biggest buyouts in the history of Microsoft's long list of 86 deals over the year, the acquisition of Yahoo, if it materializes, could turn out to be the ammunition the software giant badly needed to fight Google.

"Both Microsoft and Yahoo are struggling to compete with Google, which has become incredibly powerful in the Internet advertising space. This is a competitive response to the amount of power that Google is collecting." The world's software major, Microsoft is in the process of acquiring Internet portal company, Yahoo. The joint venture could create an Internet advertising powerhouse which would pose a threat to the rival industry leader Google. Microsoft has been under pressure to get the market share in the rapidly growing online advertising business.

The company's MSN division is in the third position after Google and Yahoo in the online search market. Moreover, in the process, it is losing its market share and also reported a growth of 10% in revenues in the latest quarterly earnings, which is much below the industry average. Executives who work in its MSN division are of the view that Microsoft does face a sense of urgency and that a deal to acquire Yahoo will be the one thing that can finally make Google nervous. Annoyed with constantly being crushed by Google, Microsoft has finally decided to buy Yahoo for $50 bn against Yahoo's current market capitalization of about $38 bn.

Global CEO Magazine, Microsoft, Yahoo, Google, Internet Portal Company, Internet Advertising, Online Advertising Business, Research and Development, R&D, Global Software Companies, Mergers and Acquisitions, Jacob Internet, Ryan Jacob, Online Graphical Ads, Online Marketing.