Microsoft bought Yahoo!

It’s finally official: Microsoft bought Yahoo! for 47.2 billion!

Microsoft will now be able to compete on an advertising level with Google.  Specifically, Microsoft will be able to leverage the Yahoo website to gain revenues from online advertisers.  Yahoo currently competes with Google Adwords for pay-per-click advertising.  Guess who will now capitalize on all of the revenues on the clicks?  That’s right - good ol’ Microsoft.

In turn, Yahoo will be able to compete with Google on more of a larger, robust scale with Microsoft as a niche software developer giant.

One big note:  Microsoft is planning to convert its MSN e-mails users to Yahoo accounts.  No indication has been made as to when, but it sounds like Microsoft is looking to further brand itself with Yahoo by showcasing Yahoo emails instead of MSN.

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