Microsoft Deal to Cancel Yahoo Pink Slips?
For once, synergies may not be a synonym for layoffs.The acquisition of Yahoo would present Microsoft with several obvious advantages. Steve Ballmer, CEO at Microsoft, said during a presentation to media and analysts that the proposed merger will offer "scale economies" and "operational efficiencies." Those are usually euphemisms for layoffs.
But not necessarily in this case. Microsoft is also hoping to get a bigger slice of the online advertising revenue pie, which Ballmer noted is expected to grow from $53 billion in 2008 to $78 billion in 2010. Yahoo has already developed Panama, an online ad system, but more work needs to be done.